Health & Fidelity

10/16/2002 12:00 am EST


Jim Lowell

Senior Partner & Chief Investment Strategist, Adviser Investments

"Our risk-adjusted investment discipline continues to help us navigate tough times and prepare for more favorable trade winds,” says Jim Lowell, editor of Fidelity Investor, the leading source of information for Fidelity fund investors. “I continue to think that the longer-term upside potential is being coiled tightly around the current downward trend. As a result, when we do move higher, I expect us to move in leaps and bounds.” Here’s the advisor’s latest growth fund recommendation.

“In our growth portfolio, we are recommending purchase of Fidelity Health Care. In our opinion this fund, managed by Steve Calhoun, dramatically increases our stake in the defensive healthcare growth group. At the same time, this move positions us for what I think will be the new leadership in the growth group. Why healthcare and not technology? Real products. Necessary products. Real market share. Increasing marketplace. Real earnings. And from current depressed prices and low valuations, the potential for increased earnings. I can’t say any of the above with regard to technology.

“Fidelity Health Care’s top ten holdings are Pfizer, Merck, Johnson & Johnson, Abbot Labs, Medtronic, Wyeth, United Health, Bristol-Myers, Tenet, and Baxter. Below these top ten, expect to see more medical equipment and system stocks (manager Calhoun also runs Fidelity Select Medical Equipment). In summary, while its biggest positions are heavily in the big pharmaceutical firms, the portfolio is diversified in the board healthcare field. It’s a match I don’t want to miss.”  The fund can be reached at 800-544-6666.

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