Fidelity Growth Discovery Soars
This fund has taken off since it gained a new manager and new strategy earlier this year.
Here's a large-company growth fund that'll rev up your portfolio: Fidelity Growth Discovery. From the time it gained a new manager and a growth-oriented slant in February 2007 through October 26, the fund posted an eye-popping gain of 29%. During that same period, Standard & Poor's 500-stock index returned 8%.
Growth Discovery's new skipper, Jason Weiner, is no stranger to the fund. He actually ran it in its early years, when it was called Contrafund II (Fidelity launched the fund in April 1998 when it closed the original Contrafund to new investors.)
Weiner also has steered several other diversified, growth-oriented funds, including Fidelity Independence and Fidelity Export & Multinational, as well as a couple of sector funds. He currently manages one other fund: Fidelity Advisor Equity Growth, a load fund with a strategy identical to that of Growth Discovery (symbol FDSVX). That fund, which Weiner took over in November 2006, gained 30% over the past year. It ranks in the top 6% of funds that invest in large, growing companies.
Sign up for Kiplinger’s Free E-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.
Weiner, who describes his strategy as "extremely flexible," invests in companies of any size, although he leans heavily toward the market's giants. He also can hunt abroad for companies with the best earnings-growth potential. Foreign names, including Japanese game maker Nintendo and Finnish mobile phone supplier Nokia (NOK), recently occupied a quarter of the $753 million fund.
Weiner also favors U.S.-based "global growers," such as Schlumberger (SLB). Although the fund holds more than 130 stocks, Growth Discovery is top-heavy: its largest 40 positions account for 70% of assets.
The fund has been soaring lately thanks to a hefty weighting in technology, which made up 40% of assets recently. In hunting for tech stocks, Weiner says he looks for companies with unique business models.
"Google, for example, has a business model not found anywhere," he says. "This company can do business with large corporations all the way down to corner pizza shops." Google (GOOG), along with storage provider EMC (EMC) and Research in Motion (RIMM), maker of the wildly popular Blackberry devices, have been among the fund's top performers.
Growth Discovery requires a minimum $2,500 investment. Its annual expense ratio of 0.80% is below-average.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
A Guide to Music Streaming Services
Deals Our guide to music streaming services from Spotify to Amazon Music, Tidal to Apple Music and how to find music streaming deals.
By Vaishali Varu Published
-
Stock Market Today: Markets Reflect Global Uncertainty
Exuberance fades as investors confront micro challenges and a murkier macro environment.
By David Dittman Published
-
The 5 Best Actively Managed Fidelity Funds to Buy Now
mutual funds In a stock picker's market, it's sometimes best to leave the driving to the pros. These Fidelity funds provide investors solid active management at low costs.
By Kent Thune Last updated
-
The 12 Best Bear Market ETFs to Buy Now
ETFs Investors who are fearful about the more uncertainty in the new year can find plenty of protection among these bear market ETFs.
By Kyle Woodley Published
-
Don't Give Up on the Eurozone
mutual 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.
By Rivan V. Stinson Published
-
Best Bond Funds to Buy
Investing for Income The best bond funds provide investors with income and stability – and are worthy additions to any well-balanced portfolio.
By Jeff Reeves Last updated
-
Vanguard Global ESG Select Stock Profits from ESG Leaders
mutual funds Vanguard Global ESG Select Stock (VEIGX) favors firms with high standards for their businesses.
By Rivan V. Stinson Published
-
Kip ETF 20: What's In, What's Out and Why
Kip 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.
By Nellie S. Huang Published
-
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.
By Nellie S. Huang Published
-
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.
By Ellen Kennedy Published