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Mutual Funds Spotlight – Fidelity Contrafund

With over $80B in assets, Contrafund is mutual fund titan


The flagship Fidelity Contrafund (MUTF: FCNTX) is one of the biggest mutual funds on the planet, with over $80 billion in assets.

Fidelity Contrafund invests almost exclusively in undervalued growth and value stocks, but some of its largest single holdings such as Apple Inc. (NASDAQ: AAPL) and Google (NASDAQ: GOOG) are considered industry leaders. One of the oldest funds around, Fidelity Contrafund is suitable for growth seeking investors who tolerate some market volatility in search of high returns.

Here are the specifics for the Fidelity Contrafund for today’s mutual fund spotlight:

Investing Strategy: This is a stock fund. More than 95% of the fund’s assets are invested in common stocks, and about 4% of the assets is in cash reserves. Less than 0.5% is allocated to bonds.

Expense Ratio: With a 0.92% expense ratio and no transaction fee, Fidelity Contrafund is low to modestly priced compared to other funds in the category. It also is among the higher Morningstar rated stocks in the category with four stars.

Top 5 Holdings: The top stocks in the Fidelity Contrafund include mass media giants Apple, Inc. (NYSE: AAPL) at 7.02% and Google, Inc. (NASDAQ: GOOG) at 4.79%, Warren Buffet’s Berkshire Hathaway Inc. A (NYSE: BRK.A) at 3.25%, financial services giant  Wells Fargo Company (NYSE: WFC) at 2.30%  and media legend The Walt Disney Company (NYSE: DIS)at  2.24%.

Returns: The one-year return of the fund is strong at 18.6 %,  slightly better than the 18.2% return for the S&P 500 and 17.1% return for the Dow Jones Industrial Average over the same period. Its five-year return of 3.4% also beats the S&P 500’s near 3% return during the period, but significantly underperforms the Dow’s 10.3% 5-year performance.

Other Fund Statistics

  • Total Assets: $81.3 Billion (as of 5/1/11)
  • Minimum Investment: $2,500
  • Fund manager: William Danoff
  • Manager’s Tenure: Since September 1990

Article printed from InvestorPlace Media,

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