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T. Rowe Price Capital Appreciation Fund Achieves Record Performance Consistency

In a remarkable achievement in the investment management field, the T. Rowe Price Capital Appreciation Fund has established a historic record for consistent outperformance. Managed by the experienced David Giroux, CFA®, this fund has outpaced its Morningstar peer group average for an astounding 17 consecutive years as of the end of 2024. This remarkable streak positions it as the longest in the sector among U.S. equity and multi-asset funds overseen by the same manager.

The analysis conducted by T. Rowe Price assessed the performance of the Capital Appreciation Fund against over 3,000 funds since 1925. This analysis revealed that no U.S.-domiciled multi-asset or equity mutual fund has maintained such a streak of outperformance under a singular manager. Specifically, an investor who invested $100,000 in the fund in 2008 would have seen their investment grow to approximately $490,000 by the end of 2024, significantly outperforming the average gains from the Morningstar U.S. Fund Moderate Allocation category.

As of December 31, 2024, the fund’s 1-, 5-, and 10-year average annual returns stood at 12.69%, 10.55%, and 10.55%, respectively. In contrast, the S&P 500 Index reported returns of 25.02%, 14.53%, and 13.10% in the same periods. The fund's performance has consistently exceeded not only its moderate allocation peer group but also broader U.S. equity and multi-asset comparisons.

David Giroux, who has over 26 years of investment experience, has been at the helm of the Capital Appreciation Fund since June 2006. Alongside managing the fund, he also serves as the head of Investment Strategy and Chief Investment Officer for T. Rowe Price Investment Management (TRPIM). His accolades include multiple nominations for Morningstar’s annual Outstanding Portfolio Manager award, of which he has won twice, as well as 22 Best Fund awards from Lipper.

The Capital Appreciation Fund was launched in 1986 and primarily seeks long-term capital appreciation through a portfolio that includes common and preferred stocks as well as fixed-income securities. It has been closed to new investors since June 30, 2014. Giroux also oversees the newly launched Capital Appreciation Equity ETF and the Capital Appreciation and Income Fund, which further diversifies his portfolio management capabilities.

Stephon Jackson, Head of TRPIM, commented on Giroux's exceptional achievement, calling it a new benchmark in investment management and a testament to the caliber of active management T. Rowe Price exemplifies. “David’s commitment, thorough research, and uncanny skill reflect the firm's investment philosophy and dedication to client results. This remarkable record may very well stand as one of his most significant career achievements,” he noted.

Giroux expressed gratitude towards his team for their support over the years, acknowledging that such success is a collective effort. He emphasized their mission to consistently deliver outstanding results for clients, reflecting on the various market landscapes encountered throughout the years.

Founded in 1937, T. Rowe Price is a leading global asset management company known for its commitment to helping both individual and institutional investors achieve long-term financial goals. As of December 31, 2024, the firm manages approximately $1.61 trillion in assets, with a significant portion corresponding to retirement-related investments. T. Rowe Price continues to be recognized for its investment excellence and management of equity, fixed income, alternatives, and multi-asset strategies.

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