6 Fundamental Fidelity Winners

Focus: FUNDS

Jim Lowell Image Jim Lowell Senior Partner & Chief Investment Strategist, Adviser Investments

Good funds can help investors play broad trends in the market while diversifying their risk, especially when they're actively managed by top professionals, writes Jim Lowell of Fidelity Investor.

As I continue to wade through the economic issues that underlie market themes, I’m never not thinking about our brick-and-mortar holdings. This month, I spotlight holdings in my fundamentally derived portfolios.

Cash Reserves (FDRXX)
My go-to source for both defense and, in a rising rate environment, offense. Right now, betwixt recovering and recovery, the buffer role this fund plays still makes sense, even though the yield is a sip shy of a dry gulch.

Manager Robert Litterst has been managing this money market fund since 2004. It began trading in May 1979, and has a market value of over $120 billion.

Contrafund (FCNTX)
The remarkable thing about manager William Danoff is his ability to deliver the goods despite the size of his fund and the interesting times in which we live.

Contrarian investing may not have been his invention, but he’s clearly a master of it. By investing in under-researched, overlooked, undervalued and/or underappreciated companies, he presents the case for active management better than most.

Contra began trading in May 1967, the brainchild of its first manager, Leo Dworsky, and has a market value of close to $55 billion.