Barron's: This T. Rowe Price Fund Manager Works Magic
December 2025, In the Spotlight
It’s hard not to be envious of people who got into the T. Rowe Price Capital Appreciation Fund (PRWCX) before it closed to new investors on June 30, 2014. It has consistently outperformed its peers in the Morningstar Moderate Allocation category since David Giroux took over as manager in 2006.
In a Barron’s article, Giroux reveals how investors can access his investment philosophy through three newer funds in the Capital Appreciation suite. Giroux, chief investment officer and head of investment strategy for T. Rowe Price, also shares how he positions portfolios when valuations appear stretched.
Explore the Capital Appreciation suite lineup
Our commitment to serving clients drives us to think deeply about their needs and develop powerful solutions to address different investor goals. The Capital Appreciation Fund is just one of several in our Capital Appreciation suite, each designed with different objectives and risk tolerances in mind. While each fund has a unique investment objective, all share a single goal: to deliver better outcomes for clients.
| Funds | Goals | Asset allocation |
|---|---|---|
| PRWCX Capital Appreciation Fund Closed |
Pursues equity-like returns with significantly less risk. | Stocks: 50%–70% Bonds: 30%–50% |
| PRCFX Capital Appreciation and Income Fund
|
Pursues attractive income with a growth of principal component. |
Stocks: 30%–50% Bonds: 50%–70% |
| TCAF Capital Appreciation Equity ETF |
Seeks to outperform the S&P 500 Index with a lower risk profile and better tax efficiency than an S&P 500 Index ETF. | Stocks: 100% Bonds: 0% |
| TCAL Capital Appreciation Premium Income ETF New |
Seeks to deliver high income through a combination of call option premiums and equity dividends. | Stocks: 100% Bonds: 0% |
Capital Appreciation Premium Income ETF (TCAL)
Seeks to deliver high income through a combination of call option premiums and equity dividends.
Morningstar Outstanding Portfolio Manager
David Giroux has been selected as the 2025 U.S. Morningstar Outstanding Portfolio Manager for the Allocation category in the annual Morningstar Awards for Investing Excellence.1
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Important Information
Past performance cannot guarantee future results.
Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information visit troweprice.com. Read it carefully.
Exchange-traded funds (ETFs) are bought and sold at market prices, not net asset value. Investors generally incur the cost of the spread between the prices at which shares are bought and sold. Buying and selling shares may result in brokerage commissions, which will reduce returns.
The T. Rowe Price Capital Appreciation Fund, Capital Appreciation and Income Fund, Capital Appreciation Equity ETF, and Capital Appreciation Premium Income ETF share the same lead portfolio manager and investment research process. However, the funds’ implementation of the research process varies, including, but not limited to, differences in product structure, asset allocation, trading, and fees and expenses. There is no guarantee that the funds will perform similarly in any market environment. Review the prospectuses for detailed information on the funds' strategy, fees, and risks.
RISKS
Capital Appreciation Premium Income ETF: The ETF is subject to the inherent volatility of common stock investing. The use of derivatives exposes the fund to additional volatility and potential losses. A derivative involves risks different from, and possibly greater than, the risks associated with investing directly in the assets on which the derivative is based, including liquidity risk, valuation risk, correlation risk, market risk, interest rate risk, leverage risk, counterparty and credit risk, operational risk, management risk, legal risk, and regulatory risk. The fund will write calls on instruments the fund owns or otherwise has exposure to (covered calls) in return for a premium. Under a call writing strategy, the fund typically would expect to receive cash (or a premium) for having written (sold) a call, which enables a purchaser of the call to buy the asset on which the option is written at a certain price within a specified time frame. Writing call options will limit the fund's opportunity lo profit from an increase in the market value and other returns of the underlying asset to the exercise price (plus the premium received).
Capital Appreciation Fund: The fund is subject to the inherent volatility of common stock investing. The value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time or that a stock judged to be undervalued may be appropriately priced. Because of the fund’s fixed income holdings or cash position, it may not keep pace in a rapidly rising market.
Capital Appreciation and Income Fund: The fund is subject to the inherent volatility of common stock investing. Fixed income securities are subject to credit risk, liquidity risk, call risk, and interest rate risk. As interest rates rise, bond prices generally fall.
Capital Appreciation Equity ETF: The ETF is subject to the inherent volatility of common stock investing. The fund's value and growth investing styles may become out of favor, which may result in periods of underperformance. The fund is nondiversified, meaning it may invest a greater portion of its assets in a single company and own more of the company’s voting securities than is permissible for a diversified fund. The fund's share price can be expected to fluctuate more than that of a comparable diversified fund.
1Previously known as the Fund Manager of the Year Award. The Morningstar Awards for Investing Excellence recognize portfolio managers and asset management firms that demonstrate excellent investment skill, the courage to differ from the consensus to benefit investors, and an alignment of interests with the strategies' investors. The Morningstar Awards for Investing Excellence award winners are chosen based on research and in-depth qualitative evaluation by Morningstar's Manager Research Group. Morningstar's Outstanding Portfolio Manager Award recognizes an individual or team who has produced exceptional returns over the long term. To qualify, a manager's strategy must currently earn a Morningstar Medalist Rating of Gold or Silver for at least one vehicle and/or share class in the appropriate asset class (equity, fixed income, or allocation). David Giroux won the Outstanding Portfolio Manager Award for the Allocation category in 2025. He previously won the Morningstar U.S. Fund Manager of the Year award for Allocation Funds in 2012 and Allocation/Alternative Funds in 2017.
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