While the Dow Jones Industrial Average hit a new high Tuesday, the Fidelity Magellan fund was the weakest performer of the 10 largest mutual funds in the nation, Bloomberg reports.
Since Oct. 9, 2002, when the Dow fell to its lowest point since five years prior, the Dow has risen an average of 15% a year. By comparison, Magellan has risen 13% a year.
The primary reason the $44.5 billion Magellan fund has trailed its peers is because its former manager was heavily invested in growth stocks at a time when value rallied, and its current manager sold the fund’s large exposure to
Of the 10 largest funds in the nation, the $58 billion Dodge & Cox Stock Fund and the $36 billion Fidelity Low-Priced Stock Fund tied as the two best-performers, rising 23% in the period.
“Most of the large funds have done well for investors, but Magellan hasn’t been on the right side of the market,” commented Russel Kinnel, director of fund research at
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