Editor's note: This is part of a continuing series of articles looking at the 20 biggest no-load stock funds.
Weighing in at $69 billion, Fidelity Contrafund is the biggest actively managed no-load fund. In charge is Will Danoff, a feisty, opinionated manager who invests wherever he sees fit. Since he took over in 1990, Contrafund has gained 16% annualized, beating Standard & Poor's 500-stock index by an average of four percentage points per year. Compared with rivals that invest in large, rapidly growing companies, the fund ranks in the top 10% of its category over the past 15 years.
Despite its name, Contrafund, which closed to new clients last April, does not focus on out-of-favor stocks. Rather, Danoff buys growth stocks that he thinks others are underestimating. Recently, his biggest positions included Apple Computer and Google -- hardly laggards. The fund also has 16% of its assets invested in midsize companies and 24% in foreign stocks, including recent top-ten positions in Mexican wireless-phone company America Movil and Swiss pharmaceutical firm Roche.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Danoff, who also runs Fidelity Advisor New Insights, a $7.6 billion load fund that is closed to new investors, is drawn to companies run by visionary executives. In fact, he likes to pay visits and chat on the phone with these executives -- sometimes, he'll have contact with as many as five companies in a day. Not surprisingly, Danoff says the secret to his success is keeping in close contact with the companies he invests in. Considering that the fund holds more than 400 names, that's a big job.
Contrafund held about $300 million when Danoff took the helm, $15 billion at the end of 1995, and $40 billion at the end of 2000. Between Contrafund and Advisor New Insights, Danoff currently manages nearly $77 billion. He has a great record, but given Contra's immensity, we suggest that shareholders HOLD their positions but not add to them.
FUND FACTS
Fidelity Contrafund (FCNTX)
Assets: $68.8 billion
Manager (year started): Will Danoff (1990)
Returns (vs. S&P 500)*
One year: 9.4% (13.8%)
Three years annualized: 14.4% (10.5%)
Five years annualized: 11.7% (5.6%)
Ten years annualized: 11.0% (8.4%)
Expense ratio: 0.88%
Portfolio turnover: 60%
Minimum investment: closed
Phone: 800-544-8544
Web site: www.fidelity.com
*Returns to January 3
Fund Fact sources: Standard & Poor's, Morningstar
View updated data for this fund and compare the performance of the 20 biggest no-load stock funds.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
IRS Says You Made a Tax Return Mistake? A New Law Could Help You Fight BackTax Law Updated taxpayer protections change what the IRS must explain on error notices and how long you have to respond.
-
The Kiplinger 25: Our Favorite No-Load Mutual FundsThe Kiplinger 25 The Kiplinger 25 is a list of our top no-load mutual funds that have proven capable of weathering any storm.
-
The 5 Best Actively Managed Fidelity Funds to Buy and Holdmutual funds Sometimes it's best to leave the driving to the pros – and these actively managed Fidelity funds do just that, at low costs to boot.
-
The 12 Best Bear Market ETFs to Buy NowETFs Investors who are fearful about the more uncertainty in the new year can find plenty of protection among these bear market ETFs.
-
Don't Give Up on the Eurozonemutual funds As Europe’s economy (and stock markets) wobble, Janus Henderson European Focus Fund (HFETX) keeps its footing with a focus on large Europe-based multinationals.
-
Vanguard Global ESG Select Stock Profits from ESG Leadersmutual funds Vanguard Global ESG Select Stock (VEIGX) favors firms with high standards for their businesses.
-
Kip ETF 20: What's In, What's Out and WhyKip ETF 20 The broad market has taken a major hit so far in 2022, sparking some tactical changes to Kiplinger's lineup of the best low-cost ETFs.
-
ETFs Are Now Mainstream. Here's Why They're So Appealing.Investing for Income ETFs offer investors broad diversification to their portfolios and at low costs to boot.
-
Do You Have Gun Stocks in Your Funds?ESG Investors looking to make changes amid gun violence can easily divest from gun stocks ... though it's trickier if they own them through funds.
