The JPMorgan Large Cap Growth Fund: A Look at Its Last Year



The JPMorgan Large Cap Growth Fund: Overview

The JPMorgan Large Cap Growth Fund – Class A (OLGAX) had $14.2 billion worth of assets under management at the end of January 2016. As of December 2015, its assets were spread across 67 holdings and included stocks of The Home Depot (HD), Regeneron Pharmaceuticals (REGN), Celgene (CELG), Delta Air Lines (DAL), and The Sherwin-Williams Company (SHW), which comprised a combined 15.3% of the fund’s portfolio.

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The JPMorgan Large Cap Growth Fund’s performance

From a purely NAV (net asset value) return standpoint, the OLGAX stood seventh among 12 funds in this review in the one year to February 12, 2016. Its returns were better in 2015, as it stood fourth among its peers.

Other metrics

The OLGAX’s standard deviation, or the volatility of returns, in the one-year period ended February 12 was 19.0%. This was much higher than the S&P 500’s 16.4%, and higher than the peer group’s average of 18.6%. The fund’s standard deviation remained on the higher side in 2015 as well.

The fund’s risk-adjusted returns, calculated by the Sharpe ratio, were -0.38, better than the S&P 500’s -0.47 for the one-year period ended February 12. For 2015, the fund’s risk-adjusted returns were the second best among 12 funds.

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The information ratio, calculated with the S&P 500 as the benchmark, was 0.07 for the one-year period ended February 12—the second fund in this review so far to have a positive ratio. The information ratio measures the fund manager’s consistency and ability to generate excess returns over a benchmark. For 2015, the fund’s information ratio against that of the S&P 500 placed it second among its peers.

A note to investors

Although the fund’s returns exhibit volatility, the consistency of its returns has more than compensated for it, as shown by the information ratio. A strong alpha also supports the fund managers’ ability to generate returns. Investors who don’t have the stomach for volatility should evaluate the fund over a longer period to see if it suits their needs. In the next article, we’ll look at the ClearBridge Aggressive Growth Fund – Class A (SHRAX).


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