Fidelity FiftyFFTYX

Morningstar Rating

Fund Research and Analysis

by Katie Rushkewicz

Fidelity Fifty could pay off over time for those willing to deal with its ups and downs.

The past two years demonstrate how volatile this fund can be. It lost more money than nearly all of its large-growth rivals during the recent bear market but has also had a sharper rebound. Read more

Kudos

Small asset base allows manager flexibility.

Low expenses. Read more

Risks

Increased stock-specific risk from the fund's concentrated format, as well as noteworthy sector bets (driven by stock-picking), may cause the fund's performance to move out of step with its peers.

Frequent management turnover is worrisome. Saperstone appears a good fit for this fund so, should he do well, we'd like to see him stay here for shareholders' sakes.

High turnover means investors could face short-term capital gains taxes down the road. Read more

Strategy

Manager Peter Saperstone looks for companies that offer catalysts for change, such as improving product cycles or new management, but that also sell below his estimates of their intrinsic values. He runs a fairly concentrated portfolio of 50-60 stocks with the top 10 holdings typically consuming 40%-50% of the fund's assets. Read more

Management

Peter Saperstone replaced Jason Weiner on this fund and sibling Fidelity Advisor Fifty FFYTX in November 2006. Saperstone has posted a decent record at Fidelity Advisor Mid Cap since taking the reins there in 2001. He started at Fidelity as analyst in 1995 and previously ran various sector funds. Read more

Inside Scoop

Manager Peter Saperstone focuses on both slow growers that will unlock cash flows as well as higher-growth, higher-priced stocks. A concentrated portfolio means the fund can experience bouts of volatility. Read more

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