Vanguard is temporarily closing its top-performing Vanguard Capital Value Fund, a $742 million fund that rose 68.5% year-to-date through the end of September. In that period of time, assets in the fund have more than tripled.

“Despite our efforts, at both a company and an industry level, to educate investors about the perils of performance-chasing, we continue to be concerned about this behavior,” said Vanguard CEO Bill McNabb. “Closing the fund for a cooling-off period protects existing shareholders from higher transaction costs from short-term-oriented investors [and] protects prospective investors from themselves, as high-performing funds will almost certainly drop off at some point.”

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