Fidelity OTCFOCPX

Morningstar Rating

Fund Research and Analysis

by Katie Rushkewicz

A new manager doesn't increase Fidelity OTC's appeal.

In June, manager Sonu Kalra was called upon to take over the struggling Fidelity Blue Chip Growth FBGRX, leaving this tech-heavy fund in the hands of Gavin Baker. Kalra's departure is disappointing. Read more

Kudos

Fund's long-term returns are solid.

Tax-loss carryforward could make the fund more tax-efficient than it has been in the past. Read more

Risks

The fund's hunting ground, the Nasdaq, is full of risky tech and biotech issues.

Fund doesn't have the flexibility that some other large-growth offerings have.

Fund has a history of manager turnover.

Expense ratio is above the norm for no-load, large-growth funds. Read more

Strategy

The fund tries to beat the Nasdaq Composite Index, which means it's typically heavy on tech stocks. Because the Nasdaq is a pretty volatile index, high risk is baked into this fund for investors who aren't prepared for sharp ups and downs. Read more

Management

Gavin Baker took over for Sonu Kalra in July 2009 after Kalra moved to Fidelity Blue Chip Growth. Baker has been at Fidelity since 1999, spending time as a semiconductor analyst and running several industry-specific funds, including Fidelity Select Pharmaceuticals FPHAX, Fidelity Select Telecommunications, and Fidelity Select Wireless (which he still runs). Read more

Inside Scoop

Fasten your seat belts. This fund aims to beat the volatile Nasdaq Composite Index over time. Because the Nasdaq sometimes has tech weightings of more than 50%, it's sure to be a wild ride. Read more

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