Will Danoff, manager of the Fidelity Contrafund, admits he was too bullish on technology and retail stocks, but says he was right to pass on low-priced financial services stocks.
The fund was down 37.2% in 2008, right along with the Standard & Poors 500 Index. Still, Danoff says that is no excuse.
Im very disappointed with this result, and I take no solace in observing that the fund was on par with its benchmark, Danoff tells investors in a letter. I was late in reducing some of my holdings in the tech sector; in retrospect, I was too ebullient about their long-term prospects. His best call, Danoff said, was in biotech.
As far as this year is concerned, Danoff believes the market could begin to rise by the end of 2009 and is particularly bullish on blue-chip stocks.