How does your fund compare to the Select Growth Fund?

Let us do the comparison for you.


Request a Comparison

How does your fund compare to the Select Growth Fund?
Let us do the comparison for you.

Request a Comparison

Q4 2023 : Portfolio Manager Q&A

Download PDF Version

Would you please comment on the Fund’s performance relative to the Morningstar Large Growth Category for the fourth quarter and the 1-year period ended December 31, 2023?

For the quarter ended December 31, 2023, the Fund returned 14.74%, outperforming the Morningstar Large Growth Category average of 13.83% for the same period. For the 1-year period as of the same date, the Fund produced a solid return of 31.11%, although it underperformed the category average of 36.74%.

We believe the Fund’s strong performance is primarily due to our investment approach of owning a concentrated portfolio of companies with a 10+ year track record of consistent growth in both stock price and earnings. In our view, this emphasis on steady performers, rather than headline-grabbing companies, enables the Fund to achieve consistent performance over time with less volatility.

Please visit the Fund’s performance page for complete performance information.

Given the Fund’s investment approach emphasizing consistent growth, how does its risk profile compare to other Large Growth funds?

The Fund’s investment approach is designed for long-term outperformance, and we seek to do so with a “smoother ride” for investors’ growth portfolios. By owning companies that have a history of 10 or more years of consistent growth in stock price and earnings, we have achieved an attractive risk/reward profile compared to our Morningstar category peers. In fact, the Fund’s Sharpe Ratio, a measure of risk-adjusted return, has outperformed the Morningstar Large Growth Category average over the 3, 5 and 10-year periods ended December 31, 2023.


Source: Morningstar as of 12/31/2023

How does the Fund’s market cap compare to its category peers?

With our long-term investment approach, we prefer to invest in companies that have room to grow. As a result, we invest in fewer mega-cap companies compared to many other large growth funds, and the Fund’s average market cap is significantly smaller compared to that of our category peers. As of December 31, 2023, the Fund’s average market cap was $110 billion, while the Morningstar Large Growth category average market cap was $440 billion.


Source: Morningstar as of 12/31/2023

What changes were made to the Fund in Q4?

During the fourth quarter, we added one company, Trane Technologies PLC (TT), to the Fund’s portfolio. Trane Technologies manufactures and services heating and cooling systems for commercial and residential systems. Some of the company’s prominent brands include Trane and American Standard.

We exited our positions in two companies during the quarter: Ansys Inc. (ANSS), an engineering software company; and Teledyne Technologies Inc. (TDY), which provides instrumentation and aerospace electronics, and other systems to governments and industrial markets.

As of December 31, 2023, the Fund held 29 companies.


As of 12/31/23, the Fund’s Top 10 Holdings were as follows: Cintas Corp (7.53%), TransDigm Group Inc (6.05%), Accenture PLC Class A (5.90%), Costco Wholesale Corp (5.34%), Roper Technologies Inc (4.97%), S&P Global Inc (4.39%), Mastercard Inc Class A (4.30%), Union Pacific Corp (4.28%), ServiceNow Inc (4.00%), Cadence Design Systems Inc (3.85%)

There are risks associated with investing in small and mid cap stocks, which tend to be more volatile and less liquid than stocks of large companies, including the risk of price fluctuations.

The performance data quoted herein represents past performance and does not guarantee future results. Market volatility can dramatically impact the fund's short term performance. Current performance may be lower or higher than figures shown. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than their original cost. Past performance data through the most recent month end is available at vlfunds.com or by calling 800.243.2729.

You should carefully consider investment objectives, risks, charges and expenses of Value Line Funds before investing. This and other information can be found in the fund's prospectus and summary prospectus, which can be obtained free of charge from your investment representative, by calling 800.243.2729, or by clicking on the applicable fund at www.vlfunds.com. Please read it carefully before you invest or send money. Value Line Funds are distributed by EULAV Securities LLC. Past performance is no guarantee of future results.

Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Current and future portfolio holdings are subject to risk.

The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses. Investment results and the principal value of an investment will vary.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three- year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. VLIFX (3 Year / 5 stars / 523 funds; 5 Year / 5 stars / 493 funds; 10 Year / 5 stars / 395 funds; ) VALLX (3 Year / 1 stars / 1115 funds; 5 Year / 1 stars / 1040 funds; 10 Year / 2 stars / 811 funds; ) VLEOX (3 Year / 5 stars / 559 funds; 5 Year / 5 stars / 527 funds; 10 Year / 5 stars / 405 funds; ) VALSX (3 Year / 5 stars / 1115 funds; 5 Year / 3 stars / 1040 funds; 10 Year / 3 stars / 811 funds; ) VLAAX (3 Year / 5 stars / 695 funds; 5 Year / 4 stars / 655 funds; 10 Year / 5 stars / 487 funds; ) VALIX (3 Year / 1 stars / 695 funds; 5 Year / 3 stars / 655 funds; 10 Year / 4 stars / 487 funds; ) VAGIX (3 Year / 2 stars / 426 funds; 5 Year / 2 stars / 386 funds; 10 Year / 2 stars / 275 funds; )

Source: Morningstar Direct