Fidelity Magellan (FMAGX) is beating its benchmark and no one cares. This was the gist of an interesting article in Bloomberg recently. It's factually correct that the fund is in outflows and is ahead of the S&P 500. The article also correctly captured the industry environment in which even strongly performing funds fail to attract much money, at least in U.S. active equity.
But I wish the article had gone on to point out that the situation isn't as bad as these things suggest. For starters, it makes plenty of sense that investors would not be impressed. Morningstar analysts are not impressed: We give the fund a Morningstar Analyst Rating of Neutral, so clearly we think there's good reason to pass on it. And Fidelity Magellan's quantitative backward-looking Morningstar Rating for funds is just 2 stars through the end of May.
Russel Kinnel does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.