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A New Winner On Mutual Fund Charts: Fidelity Leveraged Company Stock Fund

TedTed
edited April 2011 in Fund Discussions
FYI: Tom Soviero, Manager, Fidelity Leveraged Company Stock Fund has led this fund to a 15% annualized return over the past ten years.

http://www.businessweek.com/print/magazine/content/11_18/b4226047177881.htm

M* Snapshot Of Fund:
http://quote.morningstar.com/fund/f.aspx?t=flvcx
Regards,
Ted

Comments

  • Does anyone here use this fund? This fund has been an intriguing choice for a while. However, I've never been able to figure out how I would fit it into a portfolio. It doesn't seem quite exciting enough for mad money (though 50+% down in 2008 no doubt was pretty thrilling). Or would you just use it as part of a portfolio of go-anywhere funds?
  • I have never used FLVCX, but I view it as a highly cyclical high beta investment, and would consider this headline to be a sell signal.
  • I used to own this. I now prefer Fidelity Low-Priced stock (FLPSX) istead. It is a high beta fund. It goes up well in bull market and drops even more severely in bears. It is hard for most people to hold it with such swings. Pay attention to the the leveraged word in the fund description. It is not a leveraged fund in usual sense but the companies themselves are leveraged which makes them very sensitive to market movements.
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