Too big to succeed? Morningstar downgrades $124bn Fidelity Contrafund (2024)

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JAMES KING, PRO BUYER Editor’s Picks Gatekeepers' best and worst investment decisions of 2023 Raymond James gatekeepers place nine funds under review Rising Stars of Manager Research 2023 The best and worst active funds and ETFs of 2023 SEI head of global asset management to leave firm Morgan Stanley moves six funds off Focus List Where has active management delivered in 2023? The Fidelity Contrafund and related strategies have continued to beat the S&P 500, but the massive amount of money they contain has given a Morningstar analyst cause for pause. Leave a comment Your daily roundup of fund launches, strategy shifts and manager moves. Morningstar gatekeeper exits firm 2023 breaks record for new ETF launches as active managers dive in Nationwide's top gatekeeper seeks 'subtle upgrades' in these asset classes Franklin Templeton names new manager research heads Active ETFs are 'front and center' for RBC's top gatekeeper 'It’s going to be a brutal death': Why the Magnificent Seven won't ride forever and the 70s are back JAMES KING, PRO BUYER Editor’s Picks Gatekeepers' best and worst investment decisions of 2023 Raymond James gatekeepers place nine funds under review Rising Stars of Manager Research 2023 The best and worst active funds and ETFs of 2023 SEI head of global asset management to leave firm Morgan Stanley moves six funds off Focus List Where has active management delivered in 2023? Opinion & Analysis 'It’s going to be a brutal death': Why the Magnificent Seven won't ride forever and the 70s are back Veteran value investor Bill Smead explains why we're set to return to the 1970s, with persistent inflation and a favorable commodity cycle. He also discusses the decline of the 'Magnificent Seven' and why he likes energy, homebuilders, and drug companies. The best and worst active funds and ETFs of 2023 Lucky for some! 13 funds that came of age in H2 2023 Interval funds: 10 success stories from 2023 Where has active management delivered in 2023? OPINION: It's never a bad time to invest in tech The best and most popular Small Value funds Connect Rising Stars of Manager Research 2023 An exclusive list of today’s top talent and tomorrow’s leaders in manager research and due diligence. Gatekeeper roundup: 10 top selectors share what worried them in 2023 Pardon her French and pitch with passion: UBS gatekeeper shares top tips for PMs It's latte, crochet and Chick-fil-A for this gatekeeper at RayJay Phish, fascists and now finance: Meet Pro Buyer editor James King Don't play defense: How to win points with a top JP Morgan gatekeeper Check out pictures from day 2 of Citywire's Private Assets Retreat ETFS 2023 breaks record for new ETF launches as active managers dive in A record 530 new ETFs were launched in 2023, of which 73% were active. Active ETFs are 'front and center' for RBC's top gatekeeper Fund Files: Capital Group PM shuffle, manager moves at Fidelity ETF Files: PGIM, Goldman, John Hanco*ck launch new ETFs The best and worst active funds and ETFs of 2023 Most Popular Top gatekeepers' contrarian calls for 2024 Five top gatekeepers share their contrarian calls for 2024. Franklin Templeton names new manager research heads Savant CIO Phil Huber leaps to asset manager Cliffwater Nationwide's top gatekeeper seeks 'subtle upgrades' in these asset classes Active ETFs are 'front and center' for RBC's top gatekeeper Thomas H. Lee Partners pursuing sale of $131bn Hightower Advisors -sources Morningstar gatekeeper exits firm Publications After a punishing period of rising rates, bonds began to bounce back this year. But what’s in store for 2024? Fix The Future Novo loses weight with Elite Investors Alibaba could be a steal and top investors are buying The Secret (Santa) tech investor: stick these shares in your stocking FAQs

Mar 24, 2022

The Fidelity Contrafund and related strategies have continued to beat the S&P 500, but the massive amount of money they contain has given a Morningstar analyst cause for pause.

Morningstar has downgraded the $124bn Fidelity Contrafund ,arguing the strategy’s ‘colossal asset base is a substantial disadvantage.’

That’s how Morningstar analyst Robby Greengold put it in a Tuesday note explaining the fund’s drop to silver from its highest gold rating. Will Danoff has been the fund’s sole manager for decades, and while Greengold’s estimation of Danoff appears to remain high, the analyst’s view of the

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Too big to succeed? Morningstar downgrades $124bn Fidelity Contrafund (5)

fund files Jan 04, 2024 Story By William Johnson, Eva Thomas

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Too big to succeed? Morningstar downgrades $124bn Fidelity Contrafund (2024)

FAQs

Too big to succeed? Morningstar downgrades $124bn Fidelity Contrafund? ›

Morningstar has downgraded the $124bn Fidelity Contrafund, arguing the strategy's 'colossal asset base is a substantial disadvantage. ' That's how Morningstar analyst Robby Greengold put it in a Tuesday note explaining the fund's drop to silver from its highest gold rating.

Is Contrafund still a good buy? ›

Overall, Fidelity Contrafund ( FCNTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

What is the average return on Fidelity Contrafund? ›

Return Type1 Yr3 Yrs
FUND Fidelity® Contrafund®47.42%12.69%
PRIMARY BENCHMARK S&P 500 Close Popover29.88%11.49%
MORNINGSTAR CATEGORY AVERAGE Large Growth Close Popover36.45%7.95%
Rank in Morningstar Category5%7%
1 more row

Is Fidelity Contrafund better than the sp500? ›

Key Morningstar Metrics for Fidelity Contrafund

The fund's roughly 13% annualized gain over the past decade beat the S&P 500 (the fund's broad-market prospectus benchmark) and ranked among the best-performing third of funds in either the large-blend or large-growth Morningstar Categories.

Is Fidelity Contrafund closed to new investors? ›

Shares of the fund are only available for purchase by mutual funds for which FMR or an affiliate serves as investment manager. This fund is closed to new investors.

Which Fidelity fund has the highest return? ›

Fidelity Blue Chip Growth Fund (FBGRX)

One of Fidelity's top-performing funds, FBGRX is also one of its oldest. Dating back to 1987, FBGRX has managed to outperform the Russell 1000 Growth Index since inception, returning an annualized 12.9% versus 11.5%.

Is Fidelity Contrafund better than VTI? ›

Fidelity Contrafund K6 (FLCNX) has a higher volatility of 3.71% compared to Vanguard Total Stock Market ETF (VTI) at 3.19%. This indicates that FLCNX's price experiences larger fluctuations and is considered to be riskier than VTI based on this measure.

What is the dividend for Contrafund in 2024? ›

Last dividend for Fidelity Contra Fund (FCNTX) as of April 19, 2024 is 0.08 USD. The forward dividend yield for FCNTX as of April 19, 2024 is 0.42%. Average dividend growth rate for stock Fidelity Contra Fund (FCNTX) for past three years is -17.24%.

What are the top 10 holdings in Fidelity Contrafund? ›

Fidelity Contrafund (FCNTX)
  • META. Meta Platforms, Inc. 15.32%
  • BRK.A. BRK.A 8.74%
  • MSFT. Microsoft Corporation 6.73%
  • AMZN. Amazon.com, Inc. 6.43%
  • NVDA. NVIDIA Corporation 6.02%
  • AAPL. Apple Inc. 3.36%
  • LLY. Eli Lilly and Company 3.05%
  • UNH. UnitedHealth Group Incorporated 2.65%

Does Fidelity Contrafund pay a dividend? ›

FLCNX pays a dividend of $0.03 per share. FLCNX's annual dividend yield is 0.18%.

What is the rating of Fidelity Contrafund? ›

Overall Rating

Morningstar has awarded this fund 4 stars based on its risk-adjusted performance compared to the 1111 funds within its Morningstar Category.

What is the Fidelity Contrafund strategy? ›

Fidelity® Contrafund® is an opportunistic, diversified equity strategy with a large-cap growth bias. Philosophically, we believe stock prices follow companies' earnings, and those companies that can deliver durable multiyear earnings growth provide attractive investment opportunities.

What is the best S&P 500 index fund on Fidelity? ›

Our recommendation for the best overall S&P 500 index fund is the Fidelity 500 Index Fund. With a 0.015% expense ratio, it's the cheapest on our list. And it doesn't have a minimum initial investment requirement, sales loads or trading fees.

What happens if Fidelity goes bust? ›

When you invest through a distributor like Fidelity, any cash held on your behalf is placed with a range of different banks in designated client bank accounts. As the cash is kept completely separate from Fidelity's own money, if we became insolvent it would be returned to you in an orderly manner.

When did Fidelity Contrafund split? ›

FCNTX - Fidelity Contrafund
DateOpenClose*
Aug 10, 201810:1 Stock Split
Aug 01, 201813.5114.07
Jul 01, 201813.2813.46
Jun 01, 201813.2513.21
79 more rows

Is my money safe at Fidelity? ›

Protecting your assets

With our Customer Protection Guarantee, we reimburse you for losses from unauthorized activity in your accounts. We also participate in asset protection programs such as FDIC and SIPC to help provide the best service possible.

Is FCNTX a good retirement fund? ›

Overall Rating. Morningstar has awarded this fund 4 stars based on its risk-adjusted performance compared to the 1111 funds within its Morningstar Category.

Is Fidelity Select Semiconductors portfolio a good investment? ›

Fidelity Select Semiconductors Portfolio's analyst rating consensus is a Strong Buy. This is based on the ratings of 28 Wall Streets Analysts.

What is the dividend for FCNTX 2024? ›

Last dividend for Fidelity Contra Fund (FCNTX) as of April 19, 2024 is 0.08 USD. The forward dividend yield for FCNTX as of April 19, 2024 is 0.42%. Average dividend growth rate for stock Fidelity Contra Fund (FCNTX) for past three years is -17.24%.

Is it safe to invest in JP Morgan? ›

JPMS is a broker dealer registered with, and regulated by, the SEC. In compliance with the SEC rules and regulations for the protection of customers, JPMS maintains all customers' Fully Paid and Excess Margin securities as required under Rule 15c3-3(b) of the Securities Exchange Act of 1934.

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