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A Smaller-Cap Fund for Risk-Averse Investors

Robby Greengold

Robby Greengold: Risk-averse investors wanting exposure to small- and mid-cap equities should feel comfortable holding Fidelity Low-Priced Stock, which carries a Morningstar Analyst Rating of Silver.

Manager Joel Tillinghast uses a value-oriented strategy that focuses on competitively advantaged, financially sound businesses that he considers to be worthwhile long-term holdings. His approach is well-defined and consistently delivers a portfolio full of relatively inexpensive businesses with benchmark-beating returns on equity and modest debt.

The fund is among the mid-cap value category's largest, with over $35 billion in assets. That heft poses a particular challenge to effectively buying and selling the shares of smaller companies. But Tillinghast has produced exceptional risk-adjusted returns during his 28 years at the helm, and the fund continues to stand out for its unique portfolio and phenomenal execution.