Harry Lange, manager of the $18.6 billion Fidelity Magellan Fund, appears to be back on a roll, up 10.6% so far this year after a brutal 2008, Dow Jones reports. Large technology and financial bets took the funds value down nearly 50% last year.
While Lange hasnt changed his heavy allocation toward large growth, the market is turning around to favor these plays, said Christopher Davis, an analyst with Morningstar. Things that were disastrous last year have been really helpful this year, Davis said.
As of last November, Lange explained to shareholders that he believed in the bargains he was buying: While I think it could take a while to work through our difficulties here in the United States, its often when sentiment is gloomiest that you find the best bargains.