Skip to content
Subscriber Only
Businessweek
Personal Finance

A Once-Hot Fidelity Fund Is Outperforming Again. Investors Still Don’t Care

Magellan used to be America’s biggest mutual fund. Now it’s dwarfed by the company’s own index fund.
relates to A Once-Hot Fidelity Fund Is Outperforming Again. Investors Still Don’t Care
Illustration: Thomas Colligan for Bloomberg Businessweek

Jeff Feingold runs Fidelity Magellan, once the most famous mutual fund in the world. But there’s a good chance you’ve never heard of Feingold, which says a lot about the plight of active money managers these days.

From the late 1970s through the ’80s, most Americans who invested in the stock market knew the man behind Magellan. Peter Lynch posted market-beating returns of 29 percent a year, leading many ordinary investors to think the path to riches was choosing the right money manager. Lynch’s successors, including Jeffrey Vinik and Robert Stansky, got plenty of media ink in the 1990s, even if they never came close to matching Lynch’s numbers.