Should i invest in fidelity contrafund

He also has Fidelity's large global analyst team at his disposal, which helps him keep tabs on the sprawling portfolio of plus names and feeds him ideas that can help distinguish the fund from its relevant benchmarks. Indeed, Danoff consistently crafts a seemingly inimitable portfolio. The latter bogy is the better comparable, based on its holdings overlap, style similarities, and performance patterns.

The fund also owns some privately held companies, notably WeWork and SpaceX. These remain a small portion of the fund's overall assets, but investing in them early could prove beneficial down the line if they have successful IPOs.

Plus, they are another way the fund differentiates itself from popular passive funds. The challenges its size presents, plus fees that aren't as low as might be expected given its economies of scale, keep it from achieving a higher rating.

However, the fund remains an attractive offering thanks to Danoff's experience and consistent execution through the years. Danoff has made tweaks to the process through the years to accommodate its size, including trading less often, owning fewer mid- and small-cap names, and maintaining a portfolio of stocks. The name count has trended downward recently as he has focused on his best ideas.

These moves haven't affected long-term performance, which remains strong. The fund has been closed in the past, but it is currently open and has experienced outflows in recent years. Latest vaccine numbers. Share This: share on facebook share on twitter share via email print. These are the best Fidelity funds by performance for your Fidelity k. Related News. Taylor, ground game help Colts find easy path past Jets. Chef who beat Bobby Flay opening Rockville restaurant.

Related Categories: Latest News. CMMC 2. Governmentwide chat, calendar collaboration tools coming in Time for the 'great resignation? Contrafund is managed by Fidelity Investments, one of the largest mutual funds in the world. When it was first launched in , the fund was named Contrafund for its original investment objective, which was to take a contrarian view by investing in out-of-favor stocks or sectors.

In the s, Fidelity was catapulted into the top tier of investment management funds when legendary stock picker Peter Lynch drove the Magellan Fund to huge success. Since Danoff began managing the fund, its objective has changed to simply achieving capital appreciation by picking good growth stocks.

William Danoff joined Fidelity in as a securities analyst and portfolio manager. He graduated from Harvard University in and went on to earn a master of arts degree and an MBA from the University of Pennsylvania. He took over management of the Contrafund in when it was considered a contrarian fund. The fund invests primarily in large-cap U. The fund favors the technology sector with historically around a third of their assets allocated there, followed by communications, healthcare, and financials.

As of March 25, , the fund's top five holdings are in Facebook Inc. The Contrafund is considered an outstanding core holding for long-term, growth-oriented investment portfolios.

Due to the fund's exposure to domestic large-cap growth stocks, it should not make up the majority of an investor's portfolio. For a more diversified stock portfolio, the Contrafund should be complemented by an international stock fund due to its low foreign holdings. As with consumer finance, less credit-worthy borrowers have to pay a higher premium to the lenders in order to offset the risk of them not making their planned payments on time.

In the bond market, the investors are the lenders — and the higher-risk borrowers are battered corporations that have seen better days, but still need ready capital to operate. So, thanks to an eclectic mix of bulletproof bonds from the U.

There is greater risk here, of course, but with an experienced team managing this fund, it could be a great fit for those looking at generating a bit more yield than the typical bond fund. Those stocks are not restricted by hard limits on geography or size, either.

That's quite a wide swath of the market to cover! Interestingly enough, FBALX is one of the more affordable active funds in Fidelity's repertoire — meaning you can get the expertise you're looking for and a hands-on approach to asset allocation without paying out the nose on fees.

Currently, FMSDX is at the lower end of that range as it is loaded up on equities in response to a rising interest rate environment. As discussed previously, this comes with risk, as distressed companies might pay more in interest, but also carry a higher chance of default. Still, if you are willing to take on exposure to less flashy companies like this in exchange for big income, this Fidelity fund could be worth a look.

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