Is Vanguard Capital Opportunity Inv (VHCOX) a Strong Mutual Fund Pick Right Now?

Any investors hoping to find a Large Cap Growth fund could think about starting with Vanguard Capital Opportunity Inv (VHCOX). VHCOX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.ObjectiveWe classify VHCOX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.History of Fund/ManagerVHCOX is a part of the Vanguard Group family of funds, a company based out of Malvern, PA. Vanguard Capital Opportunity Inv debuted in August of 1995. Since then, VHCOX has accumulated assets of about $1.27 billion, according to the most recently available information. The fund's current manager is a team of investment professionals.PerformanceInvestors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 16.49%, and it sits in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 6.95%, which places it in the middle third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.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 15.45%, the standard deviation of VHCOX over the past three years is 16.91%. The standard deviation of the fund over the past 5 years is 16.66% compared to the category average of 16.49%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 0.93, which means it is hypothetically less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. VHCOX has generated a negative alpha over the past five years of -0.73, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesAs competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, VHCOX is a no load fund. It has an expense ratio of 0.43% compared to the category average of 0.84%. VHCOX is actually cheaper than its peers when you consider factors like cost.Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively weak performance, average downside risk, and lower fees, Vanguard Capital Opportunity Inv ( VHCOX ) has a high Zacks Mutual Fund rank, and therefore looks a great potential choice for investors right now.This could just be the start of your research on VHCOXin the Large Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. 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Click to get this free report Get Your Free (VHCOX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks