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Special Report

Our Take on Manager Changes at Fidelity, Strong

Should you stay or should you go?

It's never easy to know what to do after a manager leaves a fund. Bailing out right away usually isn't such a great idea, because the tax consequences could be considerable. What's more, the fund company might have cleaned house for good reason on this particular fund, and the new manager might be just as talented--if not better suited for the job--than the old one.

However, it's always advisable to keep a close eye on funds that have undergone manager changes. The new manager may not be as strong as the old one, or the new skipper might use a different approach than his or her predecessor did, so the fund may not be such a great fit with your portfolio anymore. And if the new manager makes big changes and starts selling some of the fund's holdings, you might get stuck with a hefty tax bill.