To: Clint E. who wrote (22066 ) 7/15/1999 5:00:00 PM From: Clint E. Read Replies (1) | Respond to of 69966
AOL Dropped From Fidelity Magellan's Top-10 Holdings; AT&T, Lucent Added By Katherine Burton AOL Falls From Top-10 Magellan Holding; AT&T Added (Update1) (Updates to add performance of the Magellan fund.) New York, July 15 (Bloomberg) -- America Online Inc. dropped from the top-10 holdings of some Fidelity Investments equity funds, including its flagship Magellan Fund, in the second quarter, while AT&T Corp. and Lucent Technologies Inc. appeared among the top investments. Fidelity discloses only its funds' top-10 holdings without saying whether changes are due to buying and selling by its fund managers or changes in the prices of shares. ''I think it is safe to assume that Fidelity was selling AOL, given that it sold $3.8 billion worth, or about 43 percent of its holdings in the company during the first quarter,'' said Eric Kobren, executive editor of Fidelity Insight, an independent newsletter that tracks the world's biggest fund company. Likewise, ''when you see so many funds with Lucent and AT&T in the top 10, you assume they've pushed into the telecommunications area,'' Kobren said. AOL shares dropped 25 percent in the second quarter, which also could have caused the company to fall out of the top holdings of the $99 billion Magellan Fund, along with the Aggressive Growth, Blue Chip Growth, Capital Appreciation, Contrafund, Contra II and Fidelity Fifty funds. Lucent climbed 25 percent and AT&T rose 5.3 percent in the quarter. Aside from being a top-10 holding of manager Robert Stansky in his Magellan Fund, Lucent showed up in the biggest holdings of Aggressive Growth, Fidelity Fifty and Large Cap Stock, among others, while AT&T is now in the top 10 of Fidelity Fifty, New Millennium, Puritan and Growth & Income. Magellan Fund, which also saw Time Warner Inc. shares fall out of the top 10 in the second quarter, has climbed 15.6 percent this year through yesterday, about 1 percentage point ahead of the benchmark Standard & Poor's 500 Index. Fidelity Fifty, which went heavily into Internet stocks in January after manager John Muresianu took over, saw many of its web holdings, including AOL, Amazon.Com Inc., At Home Corp., and eBay Inc. drop out of the top-10 list. AT&T, Philip Morris Cos., Cisco Systems Inc., Lucent, General Electric Co. and Waste Management Inc. took their place. The fund climbed 28.9 percent so far this year, with almost all that gain in the first quarter. Magellan's Top 10 The following is a list of Fidelity Magellan's top-10 holdings, from biggest to smallest stake, as of June 30, compared with March 31, according to Fidelity's report. June 30 March 31 General Electric Co. General Electric Co. Microsoft Corp. Microsoft Corp Home Depot Inc. MCI Worldcom Inc. Citigroup Inc. America Online Inc. MCI WorldCOm Inc. Home Depot Inc. Cisco Systems Inc. Cisco Systems Inc. Lucent Technologies Inc. Merck & Co. Merck & Co. Inc. Citigroup Inc. Wal-Mart Stores Inc. Wal-Mart Stores Inc. AT&T Corp. Time Warner Inc. 22.9 percent of total assets 24.2 percent of total assets