T. Rowe Price closed two funds focused on smaller companies to new investors Thursday, a move the firm said was designed to protect the traditionally risky funds from their own success.
The assets of the roughly $15.5 billion New Horizons Fund, which has investments in tech firms including Twitter, Netflix and Chinese video site Youku.com, have risen by almost $11 billion since 2002, according to the company. Returns rose 49 percent in 2013.
The assets of the roughly $10.2 billion Small-Cap Stock Fund, which has investments in Jack in the Box and pharmaceutical company Incyte Corp. have risen by $6.9 billion since 2009, when it last reopened to investors. Returns rose about 38 percent in 2013.
"We have from time to time closed or restricted investments in funds when, in our judgment, the size or pace of cash flow impairs the portfolio manager's ability to invest effectively on behalf of existing shareholders," Bill Stromberg, head of equity for T. Rowe Price, said in a statement. "We have a long history of managing growth to protect performance, and that is why we have taken this step now with these funds."