Large Cap Growth: Best of Breed
09/23/2013 10:00 am EST
I think the flagship of any portfolio that has a capital appreciation mandate ought to be a superbly run large-cap growth fund. There's no lack of them at Fidelity and my model portfolios reflect what I think are the best of breed in a prize-winning herd, says Jim Lowell, editor of Fidelity Investor.
First, from my perspective, Fidelity's growth funds pursue the following course: Growth and Value really mean the X-factor, wherein managers perceive mispriced value to be had from overlooked earnings growth potential. A broad brush, but it covers the barn and most of the horses inside.
I like large-cap growth, especially with a domestic tilt. In general, it's hard to not pick a winning large-cap growth fund at Fidelity, but it gets a bit trickier when you want the best of the best. Here's some of my buy-rated picks.
Blue Chip Growth (FBGRX)
Manager Sonu Kalra's blue chip bent is what you'd expect. His approach to finding above-average potential for growth in the most analyzed group of stocks on the planet reveals some stellar stock picking. Foreign investments make up 7.3% of the holdings.
The top three sectors are information technology (28.1%), consumer discretionary (23.4%), and health care (13.8%). The top ten holdings are Google, Apple, Gilead Sciences, Home Depot, Amazon.com, Green Mountain Coffee, Visa, Coca Cola, Qualcomm, and Tesla Motors.
Capital Appreciation (FDCAX)
Manager Fergus Shiel invests in both growth and value stocks of US and foreign companies. It began trading in November 1986, and has a market value of over $5.7 billion. Foreign investments make up 15% of the holdings. The top three sectors are consumer discretionary (34.2%), health care (19.4%), and financials (15.9%).
The top ten holdings are Amgen, Gilead Sciences, Biogen Idec, ebay, Lorillard, TJX Companies, Comcast, United Continental Holdings, Home Depot, and Monsanto.
Contra Fund (FCNTX)
Manager Will Danoff invests in the unloved, overlooked, underappreciated companies whose value is believed to not be fully recognized by the public, but he's not shy about holding onto such picks long after they ceased being wall flowers and joined the consensus dance.
One of Fidelity's older, best known and widely held funds, it began trading in May 1967, and has a market value of over $65 billion.
Foreign investments make up 10.2% of the holdings. The top three sectors are information technology (22.2%), consumer discretionary (19.7%), and financials (16.1%). The top ten holdings are Google, Berkshire Hathaway, Apple, Wells Fargo, Disney, Noble Energy, Coca Cola, Biogen Idec, Visa, and TJX Companies.
Manager Stephen DuFour runs one of the most concentrated funds at Fidelity, offsetting lack of diversification risks with old fashioned stock picking among some of the world's most liquid names.
The top ten holdings are Cabot Oil & Gas, Google, Citigroup, Visa, Bank of America, Pioneer Natural Resources, Home Depot, Onyx Pharmaceuticals, Biogen Idec, and Gap.
Growth Company (FDGRX)
Manager Steven Wymer runs one of the best large-cap funds in this, or any other, fund shop. It began trading in January 1983, and has a market value of over $25 billion.
Foreign investments make up 7.1% of the holdings. The top three sectors are information technology (32.9%), health care (19.3%), and consumer discretionary (15.9%).
The top ten holdings are Google, Apple, Salesforces.com, Regeneron Pharmaceuticals, Nvidia, Lululemon Athletica, Monsanto, Red Hat, Discovery Financial Services, and Green Mountain Coffee Roasters.
Growth Discovery (FDSVX)
Manager Jason Weiner is always on the lookout for companies with high potential for growth, while using the Russell 3000 Growth Index as an investment guide.
It began trading in March 1998, and has a market value of over $800 million. Foreign investments make up 10% of the holdings. The top three sectors are information technology (26.5%), consumer discretionary (21.9%), and health care (16.6%).
The top ten holdings are Express Scripts, Home Depot, Google, Green Mountain Coffee Roasters, Apple, Harley-Davidson, Broadcom, Facebook, Visa, and Gilead Sciences.
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