In this weekend's Barron's, the cover story
"Captain Bob, How Stansky has put Fidelity's Magellan fund back on a sane, savvy course"
What sectors are catching Stansky's eye? Technology, financial services and health care. As of March 31, technology stocks accounted for 13.7% of Magellan's portfolio, up from 2.6% when Stansky took the helm last June. Such companies, he says, ``offer some of the strongest earnings prospects around,'' noting that holdings such as Intel, Microsoft ``continued to post strong earnings,''followed by higher stockprices. Though volatility ``is second nature to this sector,''
Stansky acknowledges, ``the long-term prospects of technology companies that are able to drive product cycles in their respective industries remain excellent.''
Among Stanky's biggest and best-performng technology holdings is Lucent Technologieswhich accounts for 0.7% of his holdings and has risen in price by nearly 35% so far this year. Ever the stockpicker, he is far from indiscriminate in his craving for technology. He recentlycut his holdings in Cisco Systems by about half, for example.
Retail stocks have climbed to 6.7% of Magellan's assets, up from 3.6% when Stansky took over. His biggest positions here are Home Depot and Wal-Mart both of which have performed pressively.
So far this year, Home Depot's share price has risen 22% and Wal-Mart's has shot ahead nearly 31%.
He doesn't Coke due to its extreamly high P/E. |
