FUNDS

We select fund managers for our long-term Global Quant portfolio based purely on our quantitative manager ranking system, explains Fidelity fund specialist Jim Lowell in his Fidelity Investor.

The goal is to filter out subjective input and sift through quantifiable data to deliver a quantitative portfolio.

We only make changes to this portfolio twice each year. This portfolio is best suited for investors with a minimum time horizon of 10 years and a risk tolerance that would fall between growth and aggressive growth.

This portfolio could also serve as a growth-oriented component of a more diversified moderate growth or growth & income portfolio. I would think this portfolio would be best placed in a tax-advantaged account such as an IRA.

In the domestic portion our this Global Quant portfolio, we are recommending these three fund positions:

Fidelity Growth Strategies (FDEGX)

Manager Chris Lee invests in mostly mid-cap companies that he finds have above-average potential for earnings growth.

Foreign investments make up a mere 4.3% of the holdings. The top three sectors are consumer discretionary (23.4%), technology (19.5%), and healthcare (16.6%). Again: growth with defense.

The top ten holdings are AmerisourceBergen, Cabot Oil & Gas, Fiserv, Ross Stores, DaVita Healthcare Partners, Roper Industries, Amphenol Corp, McGraw Hill Financial, Ametek, and Dollar Tree.

Fidelity Trend (FTRNX)

Leeway to span the globe still finds manager Daniel Kelley close to home. He uses momentum and trend data of companies, sectors, and the overall market to select investments.

Foreign investments make up 8.3% of the holdings. The top three sectors are information technology (27.3%), consumer discretionary (18.1%), and healthcare (16%).

The top ten holdings are Apple, Google, Coca Cola, Oracle, Gilead Sciences, Amgen, Qualcomm, Visa, Home Depot, and Amazon.com.

Fidelity Blue Chip Growth (FBGRX)

Manager Sonu Kalra invests in blue-chip companies that he believes have above-average potential for earnings growth.

Blue chips are defined as companies found in the S&P 500 or Dow, or companies having at least $1 billion in total assets if not included in either index, so there’s mid-cap leeway built-in into this fund’s parameters.

Foreign investments are light: 7% of the holdings. The top three sectors: technology (27.7%), consumer discretionary (22.3%), and consumer staples (14.6%): so growth with defense.

The top ten holdings are Google, Apple, Gilead Sciences, Qualcomm, Amazon.com, Proctor & Gamble, Home Depot, Coca Cola, Green Mountain Coffee Roasters, and Philip Morris Int’l.

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Tickers Mentioned: Tickers: FDEGX, FTRNX, FBGRX

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