Boosted by the strategy of its new manager in the last two months of 2005,
The fund's total return of 6.4% in 2005 bested the S&P 500's 4.9% climb by 1.5 percentage points - the first time Magellan has beaten its benchmark since 2001.
"He's definitely put his own stamp on the fun, which is what we expected him to do," Fidelity spokeswoman Anne Crowley told The Globe. "He's always had a flexible investment style, and that fits well with the capital-appreciation objective of the fund."
Although Fidelity hasn't issued a portfolio holdings report for Magellan since Lange took over from Robert Stansky,
Chris Traulsen, an analyst with Morningstar, noted that these calls make Magellan a riskier investment than it has been in many years, but that in order to distinguish the fund and beat the S&P 500, Lange will have to continue making these kinds of bets. Meanwhile, a number of Fidelity's other large funds, including the Growth & Income and Low-Priced Stock funds, lagged their peers.
"It was a good year for the shop, but some of their big funds, they've got to fix," Traulsen said.