Will Fidelity Magellan Ever Beat The Market Again?

Contributed by mm | November 26, 2006 7:06 PM PST

Although those at Kiplinger's Personal Finance remain positive, I seriously doubt the new manager Harry Lange can master a turnaround story for this $45 billion fund.

From Kiplinger's Personal Finance:

Magellanâ€™s asset base swelled to $100 billion in 1999. But today it stands at just $45 billion -- the result of losses incurred during the 2000-02 bear market and a steady stream of shareholder redemptions (including both load and no-load funds, Magellan is now the 10th largest stock fund).

Today, Magellan is an entirely different animal. It is run by Harry Lange, who took over in October 2005 after building a stellar record over nine years at Fidelity Capital Appreciation, a go-anywhere fund with a tilt toward growth stocks.

Lange immediately repositioned Magellan as a growth fund. Soon after taking over, he ditched many of Stansky's stodgy blue chips -- such as Altria (MO) and Pfizer (PFE) -- and replaced them with racier fare, such as Google (GOOG) and UnitedHealth Group (UNH). "Almost all the bets I make are in riskier companies," Lange says. Indeed, over the past year Magellan was about 60% more volatile than the S&P 500.

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