Magellan Reopens...Do You Care?Lauren Young
It’s hard to believe an entire decade has passed since Fidelity Investments closed its flagship Magellan Fund to new investors. But times, they are ‘a changing. Fido will reopen Magellan to new investors on Jan. 15.
The news that Fidelity is reopening is no big surprise. In fact, Fidelity watcher Jim Lowell has been predicting this for quite some time.
I’ve watched Magellan prosper and flounder under several managers (Vinik, Stansky, Lynch). At $44.5 billion, assets in the portfolio are dramatically smaller (roughly more than 30%) since the fund closed. The trimmer size is actually a benefit to its most recent leader, Harry Lange, who has done a stellar job since he took helm in October 2005—the fund was up almost 19% in 2007.
My pal Morris Armstrong, who is a financial adviser, thinks that Fidelity must see 2008 as the year of large-cap stocks. Yet while 2007 “was very good, 2006 was disappointing,” Armstrong says. “I tend to move clients out of Magellan, and I don’t think that I have seen anything that will change my mind.”
Thus, it begs the question: Would you invest in Magellan?
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- In One Tweet, Kylie Jenner Wiped Out $1.3 Billion of Snap's Market Value
- The Two Words That Will Help Get an Airline Upgrade Over the Phone
- Apple Plans Upgrades to Popular AirPods Headphones
- U.S. Stocks End Mixed as Bonds Gain, Dollar Slumps: Markets Wrap
- Snap CEO Evan Spiegel Got $638 Million in Year of Firm's IPO