Even though Fidelitys mutual funds are performing strongly, with 62% in the top half of their category, the firm is looking for a new chief investment officer, Reuters reports. By comparison, in 2008, only 36% of the firms funds were in the top half.
Since March, Fidelity has named new equity and fixed income leaders, and since naming a new president in 2007, the firm has replaced a number of leading executives and hired a number of stock analysts.
Last year, certainly, the funds did not perform well. The flagship Magellan fund was down nearly 50%, but so far this year, it has returned 10%, 5.1 percentage points better than its category average.
Magellan Portfolio Manager Harry Lange explained, The companies I believed in, I just kept buying them on the way down, the ones that had cash and were market leaders. It was a gut-wrenching time last year, and Ive been in the industry long enough to know that a time when I have to step up, when things look the worst.