Robby Greengold: Fidelity Growth Company has thrived during portfolio manager Steve Wymer's 22 years at the helm. We have high confidence that this large-cap-focused equity fund can continue to make money for its shareholders, and so we give it a Morningstar Analyst Rating of Silver.
Wymer's experience and ability to spot promising growth firms early on sets the fund apart. The manager looks for companies with resilient business models and the potential to rapidly grow sales over a three- to five-year period. He invests with a long time horizon in mind, often holding meaningful stakes in individual firms for more than five years. But the portfolio's penchant for fast growers, particularly within its favored industries of semiconductors, software, biotech, and interactive media, consistently lands it in the high-growth section of the Morningstar Style Box.
Many of these firms trade at high price-multiples, and, although their growth potential is high, they often have highly uncertain futures. That, combined with the portfolio's relatively hefty stakes in small- and mid-cap companies, amplifies this fund's risks. But these bets are well-calculated, well-informed, and rigorously vetted, and those investors willing to tolerate some volatility should be rewarded over the long haul.
This closed fund continues to be one of the large-growth Morningstar category's best options.