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Fidelity Contrafund Fund (FCNTX) – Wall Street’s Best Digest Daily Alert – 7/8/21

The top five holdings in this fund are Facebook Inc A (FB, 9.83% of assets), Amazon.com Inc (AMZN, 8.92%), Berkshire Hathaway Inc Class A (BRK.A, 5.68%), Microsoft Corp (MSFT, 5.33%), and Apple Inc (AAPL, 3.18%).

The top five holdings in this fund are Facebook Inc A (FB, 9.83% of assets), Amazon.com Inc (AMZN, 8.92%), Berkshire Hathaway Inc Class A (BRK.A, 5.68%), Microsoft Corp (MSFT, 5.33%), and Apple Inc (AAPL, 3.18%).

Fidelity Contrafund Fund (FCNTX)
From Fidelity Monitor & Insight

There have been the occasional times this year when we wondered if Fidelity Contrafund’s astounding 30-plus year average annual return of 14% would become a record we might one day recount while bouncing grandkids on our knees.

With legendary Manager Will Danoff at the fund’s helm since 1990, was the market’s flirtation with value stocks a marker that Will’s best days at Contra are behind him?

For the record, we haven’t heard of any plans that Will is set to retire (he’s 61). Nor do we think he’s having trouble eyeing “best of breed” growth stocks. Last year for example, Contra gained 32.5% versus 18.4% for the S&P 500. And while slightly trailing his benchmark this year, the fund’s comparatively low risk of 1.03 is the result of Will investing almost 40% of Contra’s assets in value (7%) and blend (29%) stocks at the expense of growth.

Should growth stocks continue to wax and wane, Contra could wind up performing better than its more pedal-to-the-metal large-cap growth peers like Fidelity OTC Portfolio (FOCPX) and Fidelity Growth Company (FDGRX).

Jack Bowers, John M. Boyd and John Bonnanzio, Fidelity Monitor & Insight, fidelitymonitor.com, 800-397-3094, July 2021