General American Investors Co. Inc.Find Ratings Reports
- Last Ratings Update:04/30/2017
- Price as of 04/30/2017 :$34.13
- Net Assets:$1,022.53 Million
- Peer Rank:203 of 346
- Investment Rating:C+
We rate General American Investors at C+. Positive factors that influence this rating include a greater than above average total return, low price volatility and low expense structure. The fund invests approximately 100% of its assets in stocks and may be considered for investors seeking a Growth - Domestic strategy.
POSITIVES AND RISKS
Total return ranks above peers over the last three years. The General American Investors has returned an annual rate of 13.13% since inception. More recently, the fund has generated a total return of 11.68% in the last five years, 6.57% in the last three years, and 20.15% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 73% of them. It has also outpaced 57% of its competitors on a three year basis and 76% of them over the last year for the period ending 4/30/2017. On a year to date basis, GAM has returned 10.12%.
Downside risk has been below average. GAM has a draw down risk of -25.16%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 14.2%. This fund has had moderate volatility in its monthly performance over the last 36 months. As of 4/30/2017, the fund was trading at a price of $34.13, which is 0.2% below its 52-week high of $34.20 and 2.4% above its 52-week low of $33.34.
High expense ratio hinders performance. On total assets of $1.02 billion, GAM maintains a high expense ratio compared to its Growth - Domestic peers of 1.27% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As GAM is a closed end fund, it has no front end or back end load.
Manager lacks tenure and performance record lags managerial peers. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The General American Investors has been managed by Jeffrey W. Priest for only 4 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 18% of other fund managers.