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#19 in Large Growth
U.S. News evaluated 468 Large Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 32.07 percent over the past year, 16.88 percent over the past three years, 22.41 percent over the past five years, and 11.06 percent over the past decade.
|Trailing Returns||Updated 01.31.2014|
|Year to date||0.8%|
|3 Years (Annualized)||16.9%|
|5 Years (Annualized)||22.4%|
|10 Years (Annualized)||11.1%|
For investors in Fidelity Focused Stock, the past several years have been a wild ride.
As of February 05, 2014, the fund has assets totaling almost $1.74 billion invested in 51 different holdings. Its portfolio consists primarily of shares of large and mid-sized companies.
As its name suggests, this fund features a relatively concentrated portfolio. As of end of February, management owned 50 names. Moreover, upwards of 40 percent of the fund's assets were invested in its top 10 holdings. In 2010, the fund's compact nature helped. Overall, the fund finished 2010 up 24 percent. That was good enough to beat out 96 percent of its peers in Morningstar's large-growth category. Lately, management has been making a sizeable bet on the U.S. consumer. As of the end of Februray, 26 percent of the fund's stock portfolio was invested in the technology sector in names like Apple. The fund has returned 32.07 percent over the past year and 16.88 percent over the past three years.
While the fund's concentrated strategy paid off in 2010, it has backfired in other years. Because the fund is compact, the potential for big losses is magnified. Since 2000, the fund has finished in the bottom percentile of its Morningstar category in two separate years. Still, it has also finished four years in the top 10 percent. The net result of these volatile swings has largely been a wash. As of the end of 2010, the fund's trailing 10-year returns beat those of the broader market--but by just 0.2 percent per year. The fund has returned 22.41 percent over the past five years and 11.06 percent over the past decade.
Management builds the fund's portfolio from the bottom up, meaning that the fundamentals of individual companies, as opposed to sector bets, drive stock selection. The fund is concentrated and experiences a fair amount of volatility. Notably, the fund's turnover ratio, a measure of how frequently management trades, currently sits at 275 percent. By comparison, a fund that replenishes its entire portfolio once a year would have a ratio of 100 percent.
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
Stephen DuFour manages the fund.
Fidelity Focused Stock Fund has an expense ratio of 0.89 percent.
Like all stock funds, this one comes with some risks.