How the Cards Fell for 11 Large-Cap Mutual Funds in 2015
Fidelity Growth Company Fund
The Fidelity Growth Company Fund (FDGRX) “normally invests primarily in common stocks of domestic and foreign issuers that Fidelity Management & Research Company (or FMR) believes offer the potential for above-average growth. Growth may be measured by factors such as earnings or revenue.”
To select securities for its portfolio, the fund manager makes use of fundamental analysis, which includes factors like the financial condition and industry position of each issuer, along with looking at economic and market conditions. Readers should note that this fund is closed to new investors.
The fund’s assets were invested across 392 holdings as of December 2015, and it was managing assets worth $40.7 billion as of the end of December. As of November, its equity holdings included NVIDIA (NVDA), Regeneron Pharmaceuticals (REGN), Alkermes (ALKS), Monster Beverage (MNST), and Alnylam Pharmaceuticals (ALNY), comprising a combined 9.5% of the fund’s portfolio.
Historical portfolios
For this analysis, we will be considering holdings as of November 2015, as that is the latest available sectoral breakdown. The holdings after November reflect the valuation-driven changes to the portfolio, not the actual holding.
The information technology sector occupies over 36% of the fund’s portfolio, making it the biggest sectoral holding. The healthcare sector follows, making up 22.5% of the fund’s assets. Stocks from the consumer discretionary sector make up 18.7% of the fund’s portfolio. No other sector constitutes more than 10% of the portfolio.
Among its top three sectors, fund management has increased exposure to consumer discretionary and information technology stocks in the last year. Healthcare, on the other hand, did not see a major change in composition. Energy and materials stocks are out of favor with the fund manager. The fund exited the utilities sector completely in March 2015, and the fund has just a small exposure to telecom services.
How has the fund’s composition impacted its performance in 2015 and what can it be attributed to? Let’s look at that in the next article.
Browse this series on Market Realist: