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Is Glenmede Large Cap Growth Fund (GTLLX) a Strong Mutual Fund Pick Right Now?

Any investors hoping to find a Large Cap Growth fund could think about starting with Glenmede Large Cap Growth Fund (GTLLX). GTLLX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

GTLLX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.

History of Fund/Manager

Glenmede is based in Philadelphia, PA, and is the manager of GTLLX. Glenmede Large Cap Growth Fund debuted in March of 2004. Since then, GTLLX has accumulated assets of about $2.20 billion, according to the most recently available information. A team of investment professionals is the fund's current manager.

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Performance

Investors naturally seek funds with strong performance. GTLLX has a 5-year annualized total return of 12.36% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 14.64%, which places it in the middle third during this time-frame.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 11.77%, the standard deviation of GTLLX over the past three years is 12.65%. The standard deviation of the fund over the past 5 years is 12.39% compared to the category average of 11.57%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In the most recent bear market, GTLLX lost 49.7% and underperformed comparable funds by 1%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.

Nevertheless, investors should also note that the fund has a 5-year beta of 1.01, which means it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. GTLLX has generated a positive alpha over the past five years of 1.34, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Holdings

Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.

The mutual fund currently has 90.76% of its holdings in stocks, with an average market capitalization of $144.02 billion. The fund has the heaviest exposure to the following market sectors:

  1. Technology

  2. Finance

  3. Retail Trade

  4. Services

Turnover is 72%, which means, on average, the fund makes more trades in a given year than the average of comparable funds.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, GTLLX is a no load fund. It has an expense ratio of 0.87% compared to the category average of 1.08%. GTLLX is actually cheaper than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.

Bottom Line

Overall, Glenmede Large Cap Growth Fund ( GTLLX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Glenmede Large Cap Growth Fund ( GTLLX ) looks like a good potential choice for investors right now.

For additional information on the Large Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into GTLLX too for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.


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