Has Magellan Run Into A Head Wind?

At Fidelity Magellan, the nation's largest equity mutual fund, the guiding principle could always be summed up thusly: Stocks are king. Through up and down markets alike, Magellan stayed nearly fully invested. But Jeffrey Vinik, who replaced Morris J. Smith as manager last April, has spent the past six months charting a dramatically different course. He has put one-quarter of Magellan into cash and bonds and overhauled the stock portfolio. The results? Hardly exciting. In the second half of 1992, Magellan rose 7.08%, vs. 8.35% for the Standard & Poor's 500-stock index and 12.05% for the average growth fund.

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