Shortly after Harry Lange took the reins of Fidelity Magellan a year ago, he was being hailed for strong performance, Fortune reports.
Lange himself was exceptionally bullish about his capabilities, saying at the time, “I’m going to make it a go-for-it kind of fund. I really want to shoot the lights out.”
But the honeymoon lasted for only Lange’s first five months, when he delivered a 13.5% return. In the first three quarters of this year, however, Magellan has delivered its second-worst performance in 30 years, trailing the S&P 500 by 6.5 percentage points primarily due to its exposure to Japanese and tech stocks. Its worst performance was in September 1996, when it trailed the index by nine percentage points.
But Morningstar analyst Dan Lefkowitz believes Lange could still turn things around. “The nature of the way Lange invests is that he can make up a lot of ground in a hurry. I don’t think it’s a good idea for investors to bail now. They need to give him a chance.”
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