Fidelity® Growth Company Fund

Scorecard
5 / 5 Stars
Lipper
5 5 3 5 2
Zacks Investment Research
2 (Buy)
Standard & Poor's
5 / 5 Stars
TheStreet.com
B (Buy)

#20 in Large Growth

U.S. News evaluated 464 Large Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Performance

The fund has returned 29.99 percent over the past year, 16.63 percent over the past three years, 21.37 percent over the past five years, and 10.79 percent over the past decade.
 

Trailing Returns Updated 06.30.2014
Year to date 6.5%
1 Year 30.0%
3 Years (Annualized) 16.6%
5 Years (Annualized) 21.4%
10 Years (Annualized) 10.8%

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Summary

The Fidelity Growth Company fund is a fairly solid fund operating within a difficult category—large-cap growth. While the sector lagged the S&P 500 for much of the past decade, this fund’s returns stayed in the top quartile of its category a majority of the time.

As of July 03, 2014, the fund has assets totaling almost $43.06 billion invested in 387 different holdings. Its portfolio consists mostly of U.S. large-cap growth stocks.

The fund gained back much of the ground it lost in mid-summer, and at the start of October 2010, its year-to-date return stood just above 7 percent. Its heavy positions in Apple and Salesforce.com—stocks that have each appreciated more than 30 percent year-to-date as of October 5—led the way. The fund has returned 29.99 percent over the past year and 16.63 percent over the past three years.

Manager Steve Wymer sticks to high-growth stocks, especially those in the healthcare and technology sectors. But while his largest holdings are high-growth, he’ll also use tried-and-true value investing metrics to seek out undervalued stocks to fill out his 300-odd positions. Because of its high-growth focus, the fund tends to perform substantially better to its peers in heavy bull markets than in more uncertain periods. The fund has returned 21.37 percent over the past five years and 10.79 percent over the past decade.

Investment Strategy

Steve Wymer’s fund seeks capital appreciation by looking for high-growth stocks, with low valuations as a secondary criterion. He also nabs quite a few bargain stocks that have fallen on hard times. The fund is allowed to own bonds, but as of the end of August, it owned just one.
 

Role in Portfolio

Morningstar recommends this fund as a core holding.

Management

Steve Wymer has managed the fund since 1997. He uses stock reports from the Fidelity Management & Research Company to find companies that he believes will have a high growth rate over the long term, based on their profit margins, brand competitiveness, and superior business models.
 

Fees

Fidelity® Growth Company Fund has an expense ratio of 0.83 percent.

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Risk

The fund’s heavy concentration in its top 10 holdings could lead to larger losses than more diversified growth funds, if growth stocks hit a rough period.
 

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 2 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-06-11

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 2 for one year, 1 for five years, and 1 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-06-11

The fund's Value Line Risk Rank, a measure of volatility, is 3 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-06-11

In the annual Lipper/Barron’s Fund Families Survey of 2009, the Fidelity family ranks 26 out of 61 fund families surveyed.

Lipper

In the annual Lipper/Barron’s Fund Families Survey of 2009, the Fidelity family ranks 26 out of 61 fund families surveyed.

Lipper