Case Name :      Larry Puglia and the T. Rowe Price Blue Chip Growth Fund

Authors :           Kenneth Eades; Dorothy C. Kelly

Source :             Darden School of Business

Case ID :           UV7288

Discipline :        Finance

Case Length :    20 pages

Plagiarism : NO (100% Original work)

Set in late 2016, this case recounts the remarkable performance record of Blue Chip Growth Fund (BCGF), a mutual fund managed by Larry Puglia at T. Rowe Price, Inc. The case describes the investment style of Puglia, whose record with BCGF had on average outperformed the S&P 500 since the inception of the fund in 1993. The tasks for the student are to assess the performance of the fund, consider the sources of its success, and decide on the sustainability of Puglia’s performance. Consistent with the introductory nature of the case, the analysis requires no numerical calculations. The instructor should not be deceived, however: the absorption of capital-market background and the implications of financial concepts in the case will fully occupy the novice. This case updates and replaces “Bill Miller and Value Trust” and “Peter Lynch and the Fidelity Magellan Fund”. The case is intended for use in the opening stages of a finance course. It provides a nontechnical introduction to the U.S. equity markets and lays the foundation for some basic concepts in finance.