Fidelity Advisor® New Insights Fund

Scorecard
4 / 5 Stars
Lipper
4 4 5 4 2
Zacks Investment Research
2 (Buy)
Standard & Poor's
4 / 5 Stars
TheStreet.com
B+ (Buy)

#83 in Large Growth

U.S. News evaluated 466 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 31.56 percent over the past year, 14.92 percent over the past three years, 22.01 percent over the past five years.

Trailing Returns Updated 02.28.2014
Year to date 4.6%
1 Year 31.6%
3 Years (Annualized) 14.9%
5 Years (Annualized) 22.0%
10 Years (Annualized) 10.2%

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Summary

Fidelity Advisor New Insights is a relatively new fund helmed by a manager known for investing in large, brand-name companies that provide steady returns.

As of March 05, 2014, the fund has assets totaling $27.32 billion. Launched in 2003, the fund's portfolio consists of growth and value stocks of mid-cap and large-cap companies in the U.S. and abroad.

It's hard to pin down veteran manager Will Danoff, who also runs the massive Fidelity Contrafund. As of the end of February, Danoff is invested in more than 500 stocks, inclduing a number of blue chips like Walt Disney and Coca-Cola. The fund struggled somewhat in 2009, but it finished among the top half of its category in 2010. Danoff invests in an eclectic mix of companies. Year-to-date, through the end of March, stocks like Walt Disney, Noble Energy, and TJX Companies have been some of the fund's strongest-performing holdings. The fund has returned 31.56 percent over the past year and 14.92 percent over the past three years.

The fund closed to new investors in April 2006 and reopened in November 2007. Over the past five years, the fund has finished among the top 25 percent of its category. The fund has returned 22.01 percent over the past five years.

Investment Strategy

Danoff invests in companies he believes are poised for strong growth, and he holds them for the long-term, according to Morningstar. The fund invests in companies experiencing a positive fundamental change—such as new management, a product launch, a merger or acquisition, increased earnings potential—or companies that have fallen out of favor for short-term or nonrecurring reasons or that are undervalued in relation to their industry, according to the prospectus. While the fund mainly focuses on U.S. stocks, it has the flexibility to consider opportunities abroad.

Role in Portfolio

Morningstar calls the fund a core holding, saying, "The fund's diversified equity portfolio and tendency to underweight volatile areas such as technology make it a solid core holding."

Management

Danoff has managed the fund since its 2003 inception. Morningstar named him Domestic Stock Manager of the Year in 2007.

Fees

Fidelity Advisor® New Insights Fund has an expense ratio of 0.94 percent.

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Risk

The risks that the fund faces include stock market volatility and changes in political, economic, and regulatory conditions in the United States and in foreign countries. Also, since the fund has recently reopened, it is very likely to receive an inflow of assets, which could further restrict the management's flexibility, according to Morningstar.

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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 1 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 1 for one year, 2 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 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 2 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

In the annual Lipper/Barron's Fund Families Survey for 2010, Fidelity ranks 33 out of 57 fund families surveyed.

Lipper 2011-04-06

Morningstar gives this fund a stewardship rating of C on a scale of A to F. "This fund has some good things going for it on the stewardship front, including reasonable fees, a manager with skin in the game, and a generally attractive culture," Morningstar says. "However, other factors, including an insufficiently independent board, keep its overall grade from being higher."

Morningstar 2011-02-01

In the annual Lipper/Barron's Fund Families Survey for 2010, Fidelity ranks 33 out of 57 fund families surveyed.

Lipper 2011-04-06

Morningstar gives this fund a stewardship rating of C on a scale of A to F. "This fund has some good things going for it on the stewardship front, including reasonable fees, a manager with skin in the game, and a generally attractive culture," Morningstar says. "However, other factors, including an insufficiently independent board, keep its overall grade from being higher."

Morningstar 2011-02-01