Magellan's New Skipper Changes Course

Fidelity's flagship returns to its roots as a go anywhere fund.

Throughout the 1980s, the name Fidelity Magellan was synonymous with mutual fund excellence. Peter Lynch, who ran the fund from 1977 until 1990, produced a 2,700% total return over that period. His two immediate successors, Morris Smith and Jeff Vinik, continued to outpace the stock market. But under Vinik's replacement, Robert Stansky, Magellan morphed into a swollen plodder. Its asset base crossed $100 billion in 1999 but today stands at just $50 billion -- a result of losses incurred during the 2000Ð02 bear market and a steady stream of redemptions by shareholders.

Magellan, which is closed to new investors, now has a new skipper. Harry Lange, a lanky midwesterner with an aw-shucks, Jimmy Stewart-type demeanor, took over last October. Lange, 54, is a former auto-industry engineer who crafted market-beating returns during a nine-year stint running Fidelity Capital Appreciation. Before that, he ran several Fidelity technology-sector funds.

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Row 0 - Cell 0 Read the full interview with Lange
Row 1 - Cell 0 Guide to Investing in Mutual Funds
Row 2 - Cell 0 Daily Stock Watch column

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Manuel Schiffres
Executive Editor, Kiplinger's Personal Finance