LOL!
In the meantime:
Magellan Fund Moves to Cyclical Stocks
dailynews.yahoo.com
By Christopher Noble
BOSTON (Reuters) - Robert Stansky, manager of Fidelity's $87 billion Magellan fund, said on Tuesday he was weighting the giant portfolio toward cyclical stocks to position it to take advantage of a strengthening economy.
``I want the fund to be fairly aggressively positioned to take advantage of potential improvement in the economy as the year moves on,'' Stansky was quoted as saying in the fund's annual report for the year ended March 31.
``I've kept the fund overweighted in the financial and consumer discretionary sectors, focusing on companies that I believe will benefit from a strengthening economy and healthier financial markets,'' he said.
``Especially attractive are cyclical industries where reduced capacity has led to a better pricing environment for their products,'' he said without naming such an industry.
He added the fund was overweighted in the energy industry compared to its benchmark, the broad Standard & Poor's 500 Index (^SPX - news).
Magellan is the world's largest actively managed mutual fund and its investment decisions are of interest to the fund industry because of its size and the effect it can have on a stock price.
Stansky declined to forecast when the economy and markets would rebound and said the near-term outlook for corporate earnings and the economy is uncertain.
``I expect subdued returns compared to those of recent years because of the slowdown in the growth corporate profits,'' Stansky said.
TECHNOLOGY SECTOR HAS QUESTIONS THAN ANSWERS
``Many questions remain about where the economy and corporate earnings are heading in the near term,'' Stansky said. ``I don't know where the market bottom will be, but there will be successful stocks in any market environment.''
He has sharply cut the fund's exposure to technology in the past year, citing uncertainty about the sector's prospects.
``At the end of the period, I felt there were more questions than answers regarding technology,'' he said.
He said he was trying to analyze how long demand for technology products would stay soft and how quickly excess inventory could be worked through.
``Longer term, I believe the technology sector still offers attractive growth. But I'll have a better feel about the near term in the coming months,'' Stansky said.
For the year, Magellan lost 24.22 percent, lagging the 21.68 percent loss of the S&P, but leading its average growth fund peer as tracked by Lipper Inc., which lost 26.22 percent.
The top five sectors represented in the fund are financials at 20.5 percent, consumer discretionary at 16.3 percent, health care at 13.1 percent, information technology at 11.6 and industrials at 11.2.
The fund's top 10 holdings were General Electric Co. (NYSE:GE - news), Citigroup Inc. (NYSE:C - news), Exxon Mobil Corp. (NYSE:XOM - news), American International Group Inc. (NYSE:AIG - news), Viacom Inc. (NYSE:VIA - news), Pfizer Inc. (NYSE:PFE - news), Tyco International Ltd. (NYSE:TYC - news), Microsoft Corp. (Nasdaq:MSFT - news), Home Depot Inc. (NYSE:HD - news) and AOL Time Warner (NYSE:AOL - news). |
