The top five holdings of this fund are: Amazon.com Inc (AMZN, 6.78% of assets); Facebook Inc A (FB, 6.28%); Berkshire Hathaway Inc A (BRK.A, 5.09%); Microsoft Corp (MSFT, 4.35%); and Salesforce.com Inc (CRM, 3.53%).
Fidelity Contrafund Fund (FCNTX)
From Fidelity Monitor & Insight
In recent years, volatility (risk) of Fidelity Contrafund Fund (FCNTX) has crept higher. And, with the fund trailing its S&P 500 benchmark in two of the past three years (though it walloped it in 2017!), Contra’s 5-year risk-adjusted performance is now just a bit better than its large cap growth peers.
All that said, the giant Contrafund is up 20.1% this year versus its benchmark return of 18.2%. Credit Manager Will Danoff’s overweight in tech, including a 1% stake in high-flying chipmakers. Likewise, communication services is also powering performance. Fortunately, the fund has only a market-weight in health care.
Looking ahead, Will says that he continues to favor faster-growing companies that are “positioned for an environment in which earnings growth is a prominent driver of stock performance.” With earnings helping to drive Contra up 4.9% last month, that approach is fine by us!
Jack Bowers, John M. Boyd and John Bonnanzio, Fidelity Monitor & Insight,
www.fidelitymonitor.com, 800-397-3094, May 2019