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Fidelity to Shutter Hot Low-Priced Stock Fund

Firm may reopen the fund in November, however.


For the fourth time in its history, Fidelity Low-Priced Stock Fund (FLPSX) will close to new investors on May 16. But it may not stay closed for long.

In a written statement, Fidelity said it was closing the fund to allow manager Joel Tillinghast to deploy the fund's growing mountain of cash. One of Fidelity's best-performing funds, both recently and over the long term, the small-value-oriented Low-Priced Stock has garnered huge inflows of $5.7 billion since the end of December 2000, according to Fidelity. By March 31, 2002, the fund's cash stake had risen to 19% of the fund's $17.2 billion asset base. It is by far the largest entrant in the small-value category.

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Scott Cooley does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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