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Contrafund (FCNTX)

This funds largest sector holdings include: Technology (23.79% of assets), Healthcare (19.25%), and Financials (19.05%).

Contrafund (FCNTX)
from Fidelity Monitor & Insight


Contrafund (FCNTX) has $78 billion in retail shares and another $33 billion in K shares.

The fund’s most recent 5-year performance has seen Contra trail its benchmark by 0.50% on average. Top...

This funds largest sector holdings include: Technology (23.79% of assets), Healthcare (19.25%), and Financials (19.05%).

Contrafund (FCNTX)

from Fidelity Monitor & Insight

Contrafund (FCNTX) has $78 billion in retail shares and another $33 billion in K shares.

The fund’s most recent 5-year performance has seen Contra trail its benchmark by 0.50% on average. Top holdings include Warren Buffett’s Berkshire Hathaway—itself a type of large-cap fund—and Apple. Portfolio turnover is a modest 45% versus an average of about 73% for all of Fidelity’s stock funds (including index offerings). And, for all its heft, its $78 billion market cap is not much greater than the market’s $71 billion median, while five other big-cap funds at Fidelity are even higher.

The fund deliberately manages market cap lower by also holding some mid- and even a few small-cap stocks. Overall holdings total 335, but no other fund manager in the country has 135 or so analysts at his disposal.

So far this year, Contra has been a step or two ahead of the S&P 500, having risen 5.4% vs. 3.2%. While Contra has struggled to consistently beat its benchmark of late, it’s still one of Fidelity’s least-risky large-cap growth funds. In fact, it’s merely 6% riskier than the S&P, while the average actively run stock fund at Fidelity is about 15% more volatile.

In this long-running bull market, the fund’s risk-controls have put a brake on returns. (Contra is rarely a top-performer when stocks are running.)

But over the long run, paying a bit more attention to valuations relative to his peers has typically helped.

Jack Bowers, John M. Boyd and John Bonnanzio, Fidelity Monitor & Insight, www.fidelitymonitor.com, 800-397-3094, June 2015