Magellan comes out of the closet

Lauren Young
For the past decade, Fidelity Magellan was accused of being a closet index fund under the management of Bob Stansky. Now Magellan, which is Fidelity's flagship mutual fund, has come out of the closet.

Harry Lange, who took over the fund two months ago ("Fidelity is Wild About Harry"), is making some real changes, according longtime source Robin Carpenter of Carpenter Analytix. Those changes include moving from large-cap stocks to small-cap stocks. At its peak, Magellan had more than $100 billion in assets which made it hard to buy enough small stocks to really make a difference. Today Magellan has a much smaller asset base ($51 billion), so those smaller stocks should have bigger impact, assuming they perform well.

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