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Fidelity Growth Company Stumbles

Biotech, Internet-infrastructure bets turn sour.

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A fairly risky profile has taken a toll on Fidelity Growth Company (FDGRX).

Through 2001's first couple of months, this fund has gotten slammed. Although manager Steve Wymer hadn't built a huge tech stake--he'd stashed 31% of assets in the sector as of December 31, 2001--many of his picks haven't fared well this year. The stocks of several of the fund's high-priced Net-infrastructure plays, including Network Appliances (NTAP), Cisco Systems (CSCO), and Sun MicroSystems (SUNW), have gotten punished as their earnings weakened. Wymer's health-care picks, which had boosted returns in 1999 and 2000, have also taken a dive, with drugmaker Sepracor (SEPR) falling especially hard. For the year to date through March 2, 2001, the fund had lost 18%--putting it six percentage points behind its average rival.

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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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