Fidelity Growth Company Stumbles
Biotech, Internet-infrastructure bets turn sour.
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.
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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