Buoyed by an additional $100 million investment in research over the past two years and the market again favoring growth stocks, Fidelity fund managers once again have the touch, according to report from Morningstar analyst Dan Lefkowitz, The Wall Street Journal reports.
Sixty-four percent of Fidelity’s equity funds are performing better than the averages of their peers, up from 49% in 2006. Thirty-six percent of these funds, including some of Fidelity’s most popular and best known, are in the top quartile. Fidelity Contrafund, for instance, fell four percentage points behind the Standard & Poor’s 500 Index last year but is 12 percentage points ahead of it this year.
And according to Fidelity, diversified funds are doing even better, with 92% of them beating their benchmarks over the past year and 78% accomplishing this over the past three years.
“I’m excited by the performance we’ve put up,” Walter Donovan, president of equities at Fidelity, told The Journal, adding that Fidelity is much more discriminating today about the experience of the research analysts it hires.
“For a better performance year,” Lefkowitz said, “you’d have to go back to 1995.”
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.