Latest news with #FidelityMagellan
Yahoo
03-07-2025
- Business
- Yahoo
Is Fidelity Magellan (FMAGX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Large Cap Growth fund category, Fidelity Magellan (FMAGX) could be a potential option. FMAGX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance. FMAGX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. Fidelity is responsible for FMAGX, and the company is based out of Boston, MA. The Fidelity Magellan made its debut in May of 1963 and FMAGX has managed to accumulate roughly $27.08 billion in assets, as of the most recently available information. Sammy Simnegar is the fund's current manager and has held that role since February of 2019. Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 14.96%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 17.83%, which places it in the middle third during this time-frame. It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower. When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, FMAGX's standard deviation comes in at 18.59%, compared to the category average of 16.7%. Looking at the past 5 years, the fund's standard deviation is 18.56% compared to the category average of 16.77%. This makes the fund more volatile than its peers over the past half-decade. Investors should note that the fund has a 5-year beta of 1.09, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FMAGX has generated a negative alpha over the past five years of -1.6, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns. Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States. The mutual fund currently has 83.92% of its holdings in stocks, which have an average market capitalization of $455.20 billion. The fund has the heaviest exposure to the following market sectors: Technology Retail Trade Industrial Cyclical Finance This fund's turnover is about 55%, so the fund managers are making more trades in a given year than the category average. As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FMAGX is a no load fund. It has an expense ratio of 0.57% compared to the category average of 0.94%. Looking at the fund from a cost perspective, FMAGX is actually cheaper than its peers. Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount. Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included. Overall, Fidelity Magellan ( FMAGX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now. Your research on the Large Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to to see the additional features we offer as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out for more information on our screening capabilities, Rank, and all our articles as well. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FMAGX): Fund Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
30-06-2025
- Business
- Yahoo
5 Investors Who Invest Like Warren Buffett and What You Can Learn
Warren Buffett made headlines recently when he announced he will step down from his role as Chair of the Board of Berkshire Hathaway. The legendary investor is well known for bringing his successful style to the conglomerate and making himself — and a lot of other shareholders– exceedingly rich. Read More: Try This: But Buffett is not the only investor who subscribes to the investment theories that made him rich. Here are five investors who invest like Warren Buffett and what you can learn from them. Benjamin Graham was the original value investor, and he taught Buffett. Graham is considered to be the pioneer of modern securities analysis and made a fortune buying companies that were undervalued and holding them until the market caught up. Graham espoused the wisdom of technical analysis, and famously said, 'To the extent that Wall Street gets away from book value, it is headed into potentially. Dangerous areas of thinking. It then introduces factors — chiefly the notion of increasing future earnings — which are very difficult to measure and which therefore may be badly measured.' While you obviously cannot watch Graham invest today, as he died in 1976, his book, 'The Intelligent Investor,' is required reading for any aspiring value investor. See Next: Peter Lynch managed the Fidelity Magellan mutual fund from 1997 to 1990, averaging a 29.2% annual return over that time. Lynch says the biggest mistake small investors make is that they cannot explain why they own a particular stock. In an address to the National Press Club in 1994, Lynch said, 'The single most important thing to me in the stock market for anyone is to know what you own. I'm amazed how many people own stocks; they would not be able to tell you why they own it. They couldn't say in a minute or less why they own it. Actually, if you really press them, they'll say, 'the reason is own this is the sucker is going up.'' This philosophy mirrors one of Buffett's most famous investing truisms, 'buy what you know.' Joel Greenblatt is managing partner and co-chief investment officer of Gotham Asset Management and a former professor at Columbia Business School, where he taught value investing. In his book 'The Little Book That Beats the Market,' Greenblatt outlines his stock-picking methodology. He looks at a company's return on invested capital, or ROIC, to determine whether or not the company is efficiently generating earnings from its invested capital. He also looks at earnings yield, which is the amount of earnings generated for each dollar invested in the stock (so, the inverse of the P/E ratio). Greenblatt evaluates every stock using these two metrics and chooses those with the highest combined ranking. John Templeton established the Templeton Growth fund, which boasted an average growth rate of 15% over 38 years. Templeton looked for stocks that were at their lowest point, which he referred to as 'points of maximum pessimism.' This philosophy is in line with Buffett's recommendation to 'be fearful when others are greedy, and greedy when others are fearful.' In 1939, when war broke out in Europe, Templeton bought stock in over 100 companies that were then selling for a dollar per share or less. He turned a profit on all but four of them. Money magazine called him 'arguably the greatest global stock picker of the century' in 1999. Howard Marks is the founder and co-chairman of Oaktree Capital. Marks cautions against acting impulsively as an investor. 'When there is nothing clever to do, mistakes lie in trying to do something clever.' He recommends patience and caution in investing. He also pushes back on the common belief that high risk equals high return. He said, 'High risk does not equal high return. If high risk means high return, then it's not high risk by definition. In fact, in investing, low risk equals high return.' Each of these successful investors promotes at least one of Warren Buffett's well-known nuggets of investing wisdom. But they all have something else in common with Buffett. They all know that investing success is dependent on consistently applying proven methods when evaluating opportunities. Each of these investors has made it a practice to remove emotion from the investing equation and to focus on the metrics of each potential investment. This may be the most important lesson for beginning investors to take away from these success stories. More From GOBankingRates 25 Places To Buy a Home If You Want It To Gain Value This article originally appeared on 5 Investors Who Invest Like Warren Buffett and What You Can Learn
