General American Investors Company IncFind Ratings Reports
- Last Ratings Update:09/30/2016
- Price as of 09/30/2016 :$32.65
- Net Assets:$1,068 Million
- Peer Rank:217 of 324
- Investment Rating:C
We rate General American Investors at C. Positive factors that influence this rating include a 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 below peers over the last three years. The General American Investors has returned an annual rate of 12.94% since inception. More recently, the fund has generated a total return of 13.49% in the last five years, 4.72% in the last three years, and 8.38% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 70% of them. It has also outpaced 49% of its competitors on a three year basis and 36% of them over the last year for the period ending 9/30/2016. On a year to date basis, GAM has returned 2.60%.
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 13.9%. This fund has had moderate volatility in its monthly performance over the last 36 months. As of 9/30/2016, the fund was trading at a price of $32.65, which is 2.2% below its 52-week high of $33.38 and 1.9% above its 52-week low of $32.03.
High expense ratio hinders performance. On total assets of $1.07 billion, GAM maintains a high expense ratio compared to its Growth - Domestic peers of 1.17% 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 16% of other fund managers.