Laila Keith
The Fidelity Contrafund (FCNTX) is a mutual fund that has been actively managed by William Danoff since 1990. The fund focuses on large-cap U.S. stocks with market values greater than $10 billion, and seeks capital appreciation by finding value stocks poised for growth. As of November 27, 2023, the fund had assets totalling almost $105.02 billion invested in 349 different holdings. The fund has a high percentage invested in the technology sector, with more than 45% of its holdings in the information technology and communications services sectors.
What You'll Learn
Fidelity Contrafund (FCNTX) is an actively managed mutual fund
As of November 27, 2023, the fund had assets totalling almost $105.02 billion invested in 349 different holdings. The fund has a particular focus on large-cap US stocks with market values greater than $10 billion. It has a significant presence in the information technology and communications services sectors, with more than 45% of its holdings in these areas.
The fund is managed by William Danoff, who has been with Fidelity since 1986 and has managed the Contrafund since September 1990. Under his management, the fund's strategy has been to identify and invest in companies with strong management teams, strong free cash flows, and above-average returns on capital.
The fund has a minimum initial investment of $2,500, with no minimum amount for subsequent investments. It has an expense ratio of 0.74%, which is lower than the category average of 1.11%.
Fidelity Contrafund is a good choice for investors seeking exposure to large US companies, particularly those in the technology and communications sectors. The fund's strong performance, average downside risk, and lower fees make it an attractive option for those looking to invest in mutual funds.
Mutual Funds: Beat Inflation with Smart Investing
You may want to see also
The fund focuses on large-cap U.S. stocks
The Fidelity Contrafund (FCNTX) is an actively managed mutual fund that primarily invests in large-cap U.S. stocks. As of March 31, 2022, 91.47% of the fund was invested in domestic equities, with the remaining 5.75% in international equities, and the rest in bonds, cash, and other investments. The fund has a particular focus on the technology sector, with over 45% of its holdings in information technology and communications services companies.
The fund's objective is to achieve capital appreciation by investing in value stocks with strong growth potential. This strategy involves identifying companies that are undervalued by the market but have strong fundamentals and growth prospects. The fund manager, Will Danoff, seeks out companies with strong management teams, robust free cash flows, and above-average returns on capital.
The fund has a diverse range of holdings, with its top sectors being information technology (29.37%), communications services (16.39%), consumer discretionary (13.03%), and consumer staples (2.93%). The fund also has a significant stake in financial services companies, with a nearly 20% stake in companies like Berkshire Hathaway.
Some of the top holdings of the Fidelity Contrafund include well-known companies such as Meta Platforms Class A (META), Microsoft Corp. (MSFT), Berkshire Hathaway Class A (BRK.A), UnitedHealth Group (UNH), Alphabet Inc. Class A (GOOGL), and Alphabet Inc. Class C (GOOG).
The fund is suitable for investors seeking a core holding and offers a combination of growth and value stocks. However, due to its focus on large-cap growth stocks, it should not constitute the majority of an investor's portfolio.
Emergency Fund: Savings, Not Investment
You may want to see also
It has a high percentage of assets in the technology sector
The Fidelity Contrafund (FCNTX) is a mutual fund that focuses on large-cap U.S. stocks. It has a significant allocation to the technology sector, with a high percentage of assets invested in this area. As of February 28, 2022, the Information Technology sector accounted for 29.37% of the fund's holdings, making it the largest sector weighting within the fund.
The fund's objective, managed by Fidelity Investments, is to seek out capital appreciation by investing in value stocks with strong growth potential. This strategy has resulted in a high allocation to the technology sector, as these companies are often seen as having strong growth prospects. The fund's top holdings include well-known technology companies such as Meta Platforms (META), Microsoft Corp. (MSFT), and Alphabet Inc. (GOOGL and GOOG).
The fund's performance has been strong, with a 5-year annualized total return of 14.91% as of June 1, 2018, placing it in the top third among its category peers. The fund's volatility is slightly higher than its peers, with a standard deviation of 10.57% over the past 5 years compared to a category average of 10.01%.
The minimum initial investment for the Fidelity Contrafund is $2,500, and subsequent investments have no minimum amount. The fund has an expense ratio of 0.74%, lower than the category average of 1.11%.
Crowdfunding vs Crowd Fund Investing: What's the Difference?
You may want to see also
The fund is managed by William Danoff
The Fidelity Contrafund (FCNTX) is managed by William (Will) Danoff, who has been in this role since 1990. Danoff joined Fidelity in 1986 as a securities analyst and portfolio manager. He graduated from Harvard University in 1982 and went on to earn a master's degree and an MBA from the University of Pennsylvania.
Danoff's strategy for the fund has been to focus on capital appreciation by investing in good growth and value stocks that are not recognised by the public. The fund primarily holds large-cap U.S. stocks, with a particular focus on equities of large U.S. companies, including Apple, Amazon, and Microsoft. Danoff and his team conduct bottom-up fundamental analysis and meet with management teams to research growth potential, looking at factors such as corporate earnings and free cash flow.
Under Danoff's management, the fund has achieved strong performance, with a three-year return of 19.04% and a five-year return of 17.83% as of March 31, 2022. The fund has an expense ratio of 0.54% to 0.81% and is open to new investors through various account types.
Short-Term Debt Funds: A Smart Investment Strategy
You may want to see also
It has a minimum initial investment of $2,500
The Fidelity Contrafund (FCNTX) is an actively managed mutual fund that focuses on large-cap U.S. stocks. The fund is managed by Fidelity Investments and seeks out capital appreciation by investing in value stocks with strong growth potential. The minimum initial investment for the Fidelity Contrafund is $2,500, with no minimum amount for subsequent investments. This makes it accessible to investors who may not have a large amount of capital to start with.
The fund has a strong performance history, with a 5-year annualized total return of 14.91% and a 3-year annualized total return of 13.72%, placing it in the top third among its category peers. It has an expense ratio of 0.74%, lower than the category average of 1.11%, making it a cost-effective option for investors.
The Fidelity Contrafund is a good choice for investors seeking exposure to large-cap U.S. companies, particularly those in the information technology and communications services sectors, which make up more than 45% of the fund's holdings. The fund also has a significant stake in the financial services sector, with a nearly 20% investment in companies like Berkshire Hathaway.
It's important to note that the fund has a high volatility measure, with a standard deviation of 11.1% over the past three years, compared to the category average of 10.27%. This means that the fund experiences greater fluctuations in returns compared to its peers. However, during the most recent bear market, the fund lost 46.34% and outperformed its peer group by 2.65%
Fixed Income Funds: Where Do They Invest?
You may want to see also
Frequently asked questions
The minimum initial investment required is $2,500, and there is no minimum amount for subsequent investments.
The Fidelity Contrafund posted an annualized one-year return of 9.41%, a three-year return of 19.04%, and a five-year return of 17.83% as of March 31, 2022.
No, the Fidelity Contrafund is open to new investors. Investors can buy or sell shares through a Fidelity brokerage account, mutual fund account, investment advisor, or retirement account.
The objective of the Fidelity Contrafund is to achieve capital appreciation by investing in large-cap U.S. stocks with strong growth potential and finding value stocks that are not recognized by the public.
The fund has a standard deviation of 10.57% over the past 5 years, compared to the category average of 10.01%, making it slightly more volatile than its peers.
