Tuesday, September 13th
Effective today, global growth manager Harry Lange will step aside at Magellan for Jeff Feingold, the current manager of Trend. Feingold's focused approach on domestic multinationals (he has one of the lowest weightings in foreign stocks relative to his peers) follows a trend we've been on and will re-position Magellan away from an aggressive global growth fund to a more risk-managed growth fund which can capitalize better on domestic and global trends. While I'm not a tealeaf reader, the timing feels like a bullish call on domestic mega caps and a bearish one on the near-term prospects for international markets.
Here is what I had to say about Trend Fund in the September issue:
Trend (FTRNX) –Hold. Manager Jeffrey Feingold is a trend follower, but a bottoms-up stock picker amongst the trends he follows. Bigger, better balance sheets and fair wind global trading capabilities are well represented in his current fleet. Foreign investments make up 9.2% of the holdings. The top three sectors are technology (29.3%), consumer discretionary (13.8%), and industrials (12%). The top ten holdings are Apple, Exxon Mobil, Google, Cognizant Tech Solutions, Amazon.com, Qualcomm, United Technologies, Oracle, TJX Companies, and Green Mountain Coffee Roasters.
Update: Here's the official announcement from Fidelity.
Effective September 13, 2011:
Jeffrey S. Feingold has been named portfolio manager of Fidelity® Magellan® Fund, succeeding Harry Lange. Feingold will continue to manage Fidelity® Trend Fund, Fidelity® Large Cap Growth Fund (with retail and Advisor share classes), Fidelity® Advisor Strategic Growth Fund and Fidelity® VIP Growth Stock Portfolio. He joined Fidelity in 1997 as an equity analyst following the footwear, apparel and textile industries. Feingold managed Fidelity's Select Defense and Aerospace Portfolio from 1998 to 2001 and Select Air Transportation Portfolio from 2000 to 2001. He managed Fidelity's Select Home Finance Portfolio, Select Financial Services Portfolio, Fidelity® Advisor Financial Services Fund, VIP Financial Services Portfolio and served as sector leader of Fidelity's financial services equity research group from 2001 to 2004. Feingold then served as co-director of Research and managing director of Research from 2004 through 2006. He managed the U.S. Equity portion of the Fidelity® Global Balanced Fund from 2004 to 2007 and Fidelity® Worldwide Fund from 2006 to 2007. Feingold assumed responsibility for the Fidelity® Trend Fund, Fidelity® Advisor Strategic Growth Fund and Fidelity® VIP Growth Stock Portfolio in 2007. He began managing Fidelity® Large Cap Growth Fund in 2009.
Update, Thursday, September 15th
After taking 48 hours to think it through, I think a downgrade on Magellan (from Buy to Hold) makes sense from a fund-choice as opposed to a manager-choice perspective. I prefer Mega-Cap Stock to Trend or Magellan, but do think if investors in Magellan have significant taxable gains, they will fare well sticking with the fund as Feingold’s focus on domestic multinationals will lower Magellan’s overall risk profile and yet still be better able to engage with the global markets (including the emerging market consumer base).