Fidelity Magellan Mutual Fund Review and History
Sam Subramanian PhD, MBA
Tired of poor performance, Fidelity has replaced Harry Lange with Jeffrey Feingold as the manager of the Fidelity Magellan fund, FMAGX. Should you buy, sell, or hold Fidelity Magellan mutual fund shares?
With a rich history, the Fidelity Magellan fund is among the widely followed mutual funds.
Originally managed by Fidelity's Chairman and Chief Executive Officer Ned Johnson, the fund rose to prominence under Peter Lynch's stewardship. Managing the Fidelity Magellan fund from 1977 to 1990, Lynch averaged gains of 29% per year to crush the S&P 500 index by nearly 14% per year.
Jeffrey Vinik, who succeeded Lynch, garnered decent returns though not as spectacular as what Lynch delivered.
Fidelity Magellan shareholders have suffered from poor returns after Vinik's departure in 1996 ... first under Robert Stansky through 2005 and under Harry Lange since then.
Lange's bets on financials like American International Group (AIG) and Wachovia during the 2008 crisis failed and damaged Magellanís performance. So too did his wagers on foreign companies like Nokia (NOK).
Fidelity Magellan Mutual Fund Manager Jeffrey Feingold
For the past five years, the Fidelity Magellan fund has trailed 97% of its peers losing at a 2.6% annual rate.
At nearly $15 billion, Fidelity Magellan mutual fund's assets are now just a small fraction of $110 billion they tallied in 2000. During Lange's tenure, the fund's assets shrank by a whopping $33 billion. Lange now passes on a much-diminished Magellan to Jeffrey Feingold.
There are three reasons why long-suffering Fidelity Magellan shareholders can feel optimistic about Feingold. They include past achievements, investing style, and experience.
Feingold currently manages Fidelity Trend (FTRNX), Fidelity Large Cap Growth (FSLGX), Fidelity VIP Growth Stock (FPVDC), and Fidelity Advisor Strategic Growth Fund (FTQAX).
Fidelity Trend and Fidelity Advisor Strategic Growth rank in the top 15% of large cap growth funds over the past five years. These funds along with Fidelity Large Cap Growth have performed quite well over the past year ranking in the top 10%.
Feingold tends to look for companies with growing earnings across all economic sectors.
While obvious choices in information technology and consumer discretionary like Apple (AAPL), Google (GOOG), and Amazon (AMZN) are among Feingold's favorites, he extends his search beyond these sectors to other themes like nutrition, obesity, and budget-consciousness. Schiff Nutrition International (WNI), Herbalife Ltd (HLF), and Weight Watchers International (WTW) are among the names Feingold likes.
Looking at U. S. versus foreign allocation, Feingold prefers the U. S. ... at least currently. His funds on average have about 10% of their assets invested in foreign stocks compared to Magellan's 23%.
Audited Fidelity Funds System Beats Market 8-to-1
AlphaProfit's Fidelity funds system tells you the right Fidelity funds to own at the right time.
Highly acclaimed by Hulbert Financial and MarketWatch, AlphaProfit Fidelity model portfolios have turned a dollar invested in 1994 to $48.86. This beats the S&P 500 8-to-1.
Learn more about AlphaProfit's Free and Premium Fidelity Newsletters.
Feingold has risen through the ranks at Fidelity, managing sector funds like Fidelity Select Financial Services (FIDSX), Fidelity Select Consumer Finance (FSVLX), and Fidelity Select Defense & Aerospace (FSDAX) as well as the equity sleeves of Global Balanced (GBALX) and Fidelity Worldwide (FWWFX). Feingold's hands on experience in the financial sector can come in handy during these strained economic times.
The opportunity to manage the Fidelity Magellan Fund is a big step up for Feingold. Fidelity Trend, the largest of the funds managed by Feingold currently has around $1 billion in assets, a small fry compared to Fidelity Magellan. It remains to be seen if Feingold can translate his success with the smaller funds to a larger Magellan.
All-in-all, Fidelity Magellan mutual fund is a Hold. Fidelity Magellan fund shareholders should consider holding their shares to see if Feingold can reduce their pain of years of underperformance. Others should not bother with history. Feingold's Fidelity Magellan fund is worth watching from the sidelines ... at least for now.
Fidelity Funds Model Portfolios
Best Fund Recommendations from Fidelity FundsNetwork
Fidelity Mutual Funds Model Portfolios Performance
Protect & grow your wealth with
investment recommendations from free e-letter
By Hulbert #1 rank winner Dr. Sam Subramanian
'Incisive Insights, Impressive Results' - Jim Woodruff
About AlphaProfit MoneyMatters and AlphaProfit
AlphaProfit MoneyMatters is a free e-letter distributed to registered users of AlphaProfit's website. The e-letter analyzes the economy, markets, and sectors and provides money-making insights on stocks, exchange-traded funds, and mutual funds.
AlphaProfit MoneyMatters is edited by Dr. Sam Subramanian acclaimed for his financial acumen and analytical skills.
AlphaProfit Investments, LLC is an independent investment research firm based in Sugar Land, TX. AlphaProfit publishes the AlphaProfit Sector
Investor's Newsletter, edited by Dr. Sam Subramanian. Leveraging sector funds, the Newsletter provides high-performance model portfolios
with Fidelity funds and exchange-traded funds.
It also includes actionable stock recommendations. This newsletter features among MarketWatch's top 10 investment newsletters and has won
the coveted #1 rank from Hulbert Financial
Copyright Policy and Fair Use Guide
You are welcome to quote a short excerpt of the article not exceeding 100 words with attribution in the form of a hyperlink to the article's
full URL or http://www.alphaprofit.com. If you wish to republish the article in full on
your website, blog, or other media, you must obtain permission.
AlphaProfit MoneyMatters™ is for information purposes only. Nothing herein should be construed as an offer to buy or sell securities or to give individual advice on investing. Factual material is obtained from sources believed
to be reliable and is provided without warranties of any kind. AlphaProfit Investments, LLC is not responsible for any errors or omissions. AlphaProfit Investments, LLC neither is associated with nor receives any compensation from any
of the investment companies, brokers or entities connected with the securities mentioned herein. Please review our Terms and Conditions of Use and Subscriber Agreement which is available on our website at
www.alphaprofit.com; they govern your relationship with AlphaProfit Investments, LLC, including, but not by way of limitation, use of the AlphaProfit MoneyMatters.
This page is best viewed in 1024 by 768 pixels screen resolution or higher.
Copyright © 2011 AlphaProfit Investments, LLC. All rights reserved.