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The Fidelity Contrafund (FCNTX) is an actively managed mutual fund that mostly contains equities of large U.S. companies, including Apple, Berkshire Hathaway, and Amazon Inc. The fund is managed by Fidelity Investments with the objective of seeking out capital appreciation by finding value stocks with good growth opportunities.
Key Takeaways
- The Fidelity Contrafund (FCNTX) is a mutual fund containing equities of large U.S. companies, such as Apple, Salesforce, and Amazon Inc.
- The Contrafund is managed by Fidelity Investments and seeks out capital appreciation by finding value stocks poised for growth.
- The fund focuses on U.S. large-cap stocks with market values greater than $10 billion.
- More than 45% of the fund’s holdings are in the information technology and communications services sectors.
- As of March 31, 2022, Fidelity’s Contrafund has posted a three-year return of 19.04% and a five-year return of 17.83%.
Fidelity’s Contrafund’s Investment Objective
William Danoff has been the manager of the Fidelity Contrafund since September of 1990. Danoff graduated from Harvard University in 1982 and went on to earn a master of arts degree and an MBA from the University of Pennsylvania. Danoff joined Fidelity in 1986 as a securities analyst and portfolio manager.
Since Danoff began managing the fund, its objective has been to achieve capital appreciation by picking good growth and value stocks that are not recognized by the public. The holdings include best-of-breed companies with strong free cash flows, above-average returns on capital, and strong management teams.
Through the use of bottom-up fundamental analysis, the fund’s management identifies companies poised for sustained, above-average earnings growth not reflected in the stock’s price.
Fidelity Contrafund (FCNTX) Details
The fund invests primarily in large-cap U.S. stocks with 91.47% of the fund in domestic equities and 5.75% in international equities. The remainder is in a mix of bonds, cash, and other investments.
Due to the fund’s exposure to domestic large-cap growth stocks, it should not make up the majority of an investor’s portfolio. As of March 31, 2022, the Contrafund has $126.37 billion in assets under management (AUM). The fund has an expense ratio of 0.81% as of March 01, 2022.
Performance
Below is the fund’s performance over the last few years as of March 31, 2022:
- 1 Year: 9.41%
- 3 Years: 19.04%
- 5 Years: 17.83%
Sector Allocation
Below are the Contrafund’s top sectors along with the percentage of their weighting within the fund as of Feb. 28, 2022.
- Information Technology: 29.37%
- Communications Services: 16.39%
- Financials: 15.13%
- Consumer Discretionary: 13.03%
- Health Care: 12.04%
- Industrials: 3.95%
- Consumer Staples: 2.93%
- Materials: 2.85%
- Energy: 1.29%
- Real Estate: 0.23%
- Utilities: 0.04%
Please check a fund’s asset allocation to ensure it aligns with your investment goals. For example, 60.89% of the Contrafund is in three sectors; Information technology, communication services, and financials. For investors looking for exposure to specific sectors, like energy and industrials, the fund is underweight with only a 5.24% total allocation.
Top Ten Holdings
Below are the Contrafund’s top ten holdings along with their percentage weightings within the fund as of Dec. 31, 2021. The top ten stocks represent 49.14% of the fund’s assets.
| Fidelity Contrafund (FCNTX) Top Ten Holdings | |
|---|---|
| Holding (Company) | % of Fund’s Assets |
| Meta Platforms Class A (FB) | 9.7% |
| Amazon Inc. (AMZN) | 7.8% |
| Microsoft Corp. (MSFT) | 6.5% |
| Berkshire Hathaway Class A (BRK.A) | 5.9% |
| Apple Inc. (AAPL) | 3.8% |
| UnitedHealth Group (UNH) | 3.6% |
| Alphabet Inc. Class A (GOOGL) | 3.4% |
| NVIDIA Corp. (NVDA) | 3.2% |
| Alphabet Inc. Class C (GOOG) | 3.1% |
| Salesforce Inc. (CRM) | 2.4% |
Questions and Answers
Is Fidelity Contrafund Still Good?
The Fidelity Contrafund is still actively managed by William Danoff, who has run the fund since September 1990. The fund holds mainly large U.S. equities across several sectors, including well-established companies like Amazon, Apple, and Berkshire Hathaway.
Is Fidelity Contrafund Closed to New Investors?
No. The Fidelity Contrafund is open to new investors. Investors can buy or sell shares through a Fidelity brokerage account, mutual fund account, investment advisor, or retirement account.
What Is the Rate of Return on Fidelity Contrafund?
The Fidelity Contrafund posted an annualized one-year return of 9.41%, with a three-year return of 19.04% and a five-year return of 17.83% as of March 31, 2022.
How Much Does Will Danoff Make?
Fidelity does not disclose the details of Will Danoff’s compensation.
The Bottom Line
The Fidelity Contrafund is a fund containing large, well-established companies with solid management teams that are likely to exhibit superior earnings growth and strong free cash flow. The majority of the fund’s holdings are U.S. domestic equities that include Alphabet, Berkshire Hathaway, Apple, and Amazon.
However, more than 45% of the fund is comprised of technology companies that are in the information technology and communications services sectors. Before investing, please read the fund’s investment objectives and prospectus and consult a financial advisor to determine if the Fidelity Contrafund is a good choice for your financial situation.
