Fidelity Growth & Income Holds Up Well in 2000's Tech Meltdown
After shining in 2000's fourth quarter, Fidelity Growth & Income stumbles a bit.
At first glance, it might appear that early 2001 has been Fidelity Growth & Income's (FGRIX) kind of market. It hasn't.
Although this fund has a big underweight in tech, which has fallen sharply in 2001's early going, it is nevertheless off to a subpar start this year. For the year to date through March 7, 2001, the fund has lost 5.4% in a difficult market, leaving it a percentage point behind its benchmark, the S&P 500 index. A few factors have hampered the fund. Manager Steve Kaye has consistently favored fee-rich financials over banks with more credit risk. That was a winning bet between 1998 and 2000, but over the past few months, regional banks have rallied sharply. Many retail stocks have posted strong returns in 2000, but Kaye has maintained a below-market stake in that sector. Furthermore, the fund has relatively little exposure to the one area of tech that has soared in 2001: PC-related stocks such as Dell Computer (DELL) and Microsoft (MSFT).
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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