Fidelity Continues to Reduce PeopleSoft Holdings
Tuesday December 10, 3:40 pm ET
By Marcelo Prince
NEW YORK -- Fidelity Investments reduced its stake in PeopleSoft Inc. (NasdaqNM:PSFT - News) by about a third in recent months as several of its growth funds continue to pare their holdings in the software company.
Fidelity reported owning 10.48 million PeopleSoft shares, or a 3% stake, in a filing Tuesday with the Securities and Exchange Commission. It owned 15.05 million PeopleSoft shares, or a 5% stake, at the end of September.
The Boston mutual fund giant was one of PeopleSoft's largest shareholders, owning about 10% of the company at the start of 2002. Fidelity has held PeopleSoft in several funds, including its Growth Company and Aggressive Growth funds.
A Fidelity spokesman had no immediate comment, and the firm typically doesn't discuss individual holdings. A PeopleSoft spokesman declined to comment.
PeopleSoft shares are down 58% so far this year, but they have rallied 37% since Sept. 30.
Other institutions have been buying while Fidelity has been selling. Alliance Capital has nearly tripled its stake in PeopleSoft this year. The New York money manager owned 36 million PeopleSoft shares, or 11%, at the end of September.
The Pleasanton, Calif., company sells software used by companies to streamline their human resources, bookkeeping and customer service. After new leadership and products fueled strong growth during 2001, the company has struggled with declining sales in each of the past three quarters as corporations have postponed software purchases.
- Marcelo Prince, Dow Jones Newswires; 201-938-5244; marcelo.prince@ dowjones.com
Dow Jones Newswires
12-10-02 1540ET |
