Fidelity Growth DiscoveryFDSVX

Morningstar Rating

Fund Research and Analysis

by Christopher Davis

Fidelity Growth Discovery has been disappointing lately, but don't count it out.

After suffering an especially rough 2008, this offering hasn't come out swinging as hard as one might expect. Manager Jason Weiner's big bet on financials proved way premature last year, but it should have lent a huge boost in 2009. Read more

Kudos

The fund's new manager has built fine records on a number of different funds.

Low expenses. Read more

Risks

Management's taste for pricier stocks and willingness to make big sector bets will likely lead to volatility.

High-turnover approach increases trading costs and reduces tax efficiency.

Manager hasn't been at any of his previous assignments for long, and there's no guarantee it'll be any different in this fund's case. Read more

Strategy

Jason Weiner looks for companies with real earnings-growth potential. If a company fails to meet expectations, he will cut bait rather than suffer what he calls "growth-stock failure." Some of his picks have internal earnings catalysts (such as a restructuring); others are benefiting from broad themes (increased dental spending, for example). Read more

Management

Ironically, Jason Weiner managed this fund before, when it was called Contrafund II. Weiner got the tap again in February 2007, after the fund's benchmark changed from the S&P 500 Index to the Russell 3000 Growth Index and blend-oriented skipper Adam Hetnarski stepped off. Read more

Inside Scoop

Veteran manager Jason Weiner employs a fast-moving, sector-betting style. Quickly moving in and out of sectors can be a tricky strategy to execute, but Weiner has gotten it right more often than not. Read more

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