March 4, 2004 — Two of Vanguard Group's top performing funds last year were closed to new investors today to keep them from getting too big to be manageable.
In addition to closing the $23-billion Vanguard PRIMECAP (VPMCX) and the $7-billion Vanguard Capital Opportunity/Inv (VHCOX), Vanguard limited purchases by the funds' current shareholders to $25,000 per year.
The Primecap fund returned 37.8% last year, versus 28.2% for the average large-cap growth fund. Vanguard Capital Opportunity posted a total return of 49.6% in 2003, compared to 35.8% by its mid-cap growth fund peers. Both funds are run for Vanguard by Primecap Management Co. of Pasadena, Calif.
