NewBridge Asset Management, an investment management company, recently released its Q4 2025 letter for “NewBridge Large Cap Growth Equity Strategy”. A copy of the letter can be downloaded here. Equity markets continued their upward momentum in the fourth quarter, driven by resilient economic growth and solid corporate returns. In the fourth quarter, large-cap growth outperformed, while in the third quarter, small-cap and value equities exceeded the growth strategy. The NewBridge Large Cap Growth Strategy g ...

Core Viewpoint - The T. Rowe Price Blue Chip Growth ETF (TCHP) aims for long-term capital growth through a concentrated portfolio of large- and mid-cap US blue-chip growth companies [1] Investment Strategy - The fund invests at least 80% of net assets in established US issuers classified as large-cap and growth by major index providers [1] - The strategy employs bottom-up fundamental research focusing on durable competitive advantages, sustainable earnings growth, seasoned management, and strong balance sheets [1] - Portfolio construction follows a high-conviction, non-diversified approach, allowing for significant issuer and sector exposures in growing industries [1] Security Selection and Management - Positions are adjusted by trimming or selling as fundamentals weaken, valuations become excessive, or better risk-adjusted opportunities arise [1] - The fund maintains a consistent large-cap growth profile and strong underlying liquidity [1]

Core Insights - The Vanguard S&P 500 Growth ETF (VOOG) and the Vanguard Growth ETF (VUG) target U.S. growth stocks but differ in size, sector focus, and risk-return profiles [1][2] Cost & Size Comparison - VOOG has an expense ratio of 0.07% and AUM of $21.7 billion, while VUG has a lower expense ratio of 0.04% and AUM of $357.4 billion [3][10] - The one-year return for VOOG is 15.7%, compared to 14.4% for VUG, and VOOG offers a slightly higher dividend yield of 0.48% versus VUG's 0.42% [3] Performance & Risk Metrics - Over five years, VOOG has a max drawdown of -32.74%, while VUG has a max drawdown of -35.61% [4] - A $1,000 investment in VOOG would grow to $1,978, while the same investment in VUG would grow to $1,984 over five years [4] Portfolio Composition - VUG holds 160 stocks with 53% in technology, while VOOG holds 217 stocks with 45% in technology [5][6] - The top three holdings for both funds are Nvidia, Apple, and Microsoft, but VUG's top three holdings account for 33.51% of its total assets, compared to 27.23% for VOOG, indicating greater diversification in VOOG [9] Diversification & Volatility - VOOG's larger number of holdings and lower concentration in technology may reduce its volatility, as indicated by its lower beta of 1.10 compared to VUG's beta of 1.23 [3][8] - VOOG's structure allows for less weight toward top stocks, which can help mitigate risk [9] Liquidity Considerations - VUG's significantly larger AUM provides better liquidity and trading flexibility for investors compared to VOOG [10]

Core Insights - The stock market in 2025 is characterized by a clear division between large-cap growth winners and small to mid-cap value stocks, which have experienced significant declines [1] Group 1 - The market is increasingly concentrated, with large-cap growth stocks outperforming their smaller counterparts [1] - The experience of analysts covering technology companies and working in Silicon Valley provides insights into current industry trends [1] - Contributions from analysts like Gary Alexander, who has been active since 2017, highlight the evolving themes in the technology sector [1]

Core Insights - The stock market in 2025 is characterized by a clear division between large-cap growth winners and small to mid-cap value stocks that have underperformed [1] Group 1: Market Overview - The market is increasingly concentrated, with large-cap growth stocks dominating performance while small and mid-cap value stocks lag behind [1] Group 2: Analyst Background - Gary Alexander has extensive experience in technology sectors, having worked on Wall Street and in Silicon Valley, and has been an adviser to seed-round startups [1] - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, with his articles reaching audiences through popular trading apps like Robinhood [1]

Core Insights - The Vanguard Russell 1000 Growth ETF (VONG) has advantages such as lower fees and stronger recent returns compared to the iShares Russell 2000 Growth ETF (IWO), which offers broader small-cap growth exposure and a slightly higher yield [1][2]. Cost & Size Comparison - VONG has an expense ratio of 0.07%, significantly lower than IWO's 0.24% - VONG's one-year return is 19.3%, while IWO's is 4.56% - VONG has a dividend yield of 0.46%, compared to IWO's 0.66% - VONG's assets under management (AUM) stand at $41.7 billion, while IWO's AUM is $12.95 billion [3]. Performance & Risk Metrics - VONG's maximum drawdown over five years is -32.72%, while IWO's is -42.02% - An investment of $1,000 in VONG would grow to $2,061 over five years, compared to $1,220 for IWO [4]. Fund Composition - IWO targets small-cap U.S. growth stocks with 1,090 holdings, primarily in technology (25%), healthcare (22%), and industrials (21%) - The top holdings in IWO are evenly distributed, with no single holding exceeding 2% of total assets - VONG is concentrated in large-cap growth, with technology making up 54% of its portfolio, followed by consumer cyclical (13%) and communication services (12%) - The top three holdings in VONG (Nvidia, Apple, and Microsoft) account for over 36% of the fund [5][6]. Investment Considerations - VONG may appear superior due to its lower expense ratio, less severe maximum drawdown, and higher returns, but it has a heavy reliance on the tech sector, which limits diversification and increases risk [8]. - IWO, while experiencing lower recent returns, offers broader diversification and potential for explosive growth in small-cap stocks [9]. - The choice between VONG and IWO depends on whether an investor seeks large-cap growth or small-cap diversification [10].

Core Insights - The Nasdaq 100 has significantly outperformed other major U.S. stock indexes since the bull market began on October 12, 2022, with a gain of 139.2% [1][5] - The Invesco QQQ Trust, which tracks the Nasdaq 100, turned a $10,000 investment into $23,919, representing a gain of $13,919 [2][5] - The S&P 500 and Dow Jones Industrial Average also saw gains, but they were lower than that of the Nasdaq 100, with the S&P 500 up 92.2% and the Dow up 63% [3][4][5] Performance Comparison - The SPDR S&P 500 ETF (SPY) increased by 92.2%, resulting in a value of $19,218 from an initial $10,000 investment, which is $9,218 in gains [3][5] - The SPDR Dow Jones Industrial Average (DIA) rose by 62.7%, bringing an initial $10,000 investment to $16,266, yielding a gain of $6,266 [4][5] - Overall, while all major U.S. stock indexes provided positive returns, the Nasdaq 100 was the standout performer, primarily due to its concentration in large-cap tech stocks [4][5]

Group 1 - Large-cap growth stocks continue to outperform the broader market, with significant drawdowns observed in recent years [1] - Investors remain optimistic about large-cap growth, particularly highlighting NVIDIA as a leading stock in this category [1] Group 2 - Active mutual funds are showing interest in large-cap growth stocks, indicating a bullish sentiment among investors [1]

Group 1 - The S&P 500 is approaching year-to-date highs despite rising geopolitical and macroeconomic concerns, indicating a potentially stretched valuation in large-cap growth stocks [1] - Gary Alexander has extensive experience in technology sectors, having worked on Wall Street and in Silicon Valley, and advises seed-round startups, which provides him insight into current industry trends [1] Group 2 - The article emphasizes the importance of understanding valuation multiples in the context of current market conditions, particularly for large-cap growth companies [1]