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Tech Takes Toll on Fidelity Advisor Balanced

An ill-timed foray into the tech sector hurt Fidelity Advisor Balanced's returns.


Fidelity Advisor Balanced Fund (FAIGX) still hasn't recovered from a case of tech fever.

Tech hasn't been manager John Avery's friend in recent years. In 1999, this formerly value-tilted fund fell behind more-aggressive peers as highflying tech stocks ruled the market. Near the end of 1999, Avery significantly increased the fund's tech weight, prompted in part by Fidelity's move to change the fund's equity benchmark from a value index to the S&P 500. (The latter has considerably more tech exposure.) After failing to benefit much from the sector's runup in 1999, the fund had far more exposure to the sector in 2000, when tech faltered badly. Several of Avery's blue-chip tech picks were particularly hard-hit, including Microsoft (MSFT) and Dell Computer (DELL).

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

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