Aug. 12, 2003 — Fidelity Investments introduced a fund it said is “patterned after” its $31 billion Fidelity Contrafund (FCNTX) and is overseen by that fund’s portfolio manager, Will Danoff.
The new Fidelity Advisor New Insights fund can invest in growing companies and undervalued stocks, and can buy companies of any size, Fidelity said. However, it will be benchmarked against the Standard & Poor’s 500 index, which is composed of large-cap stocks.
Contrafund, which Danoff has managed since 1990, has lagged its peers and the S&P 500 recently, but has outpaced both over the long term.
This year through last month, Contrafund gained 12.3%, versus 15.7% for the average large-cap growth fund, and 13.7% for the index. For the ten years ended in July, the Fidelity fund returned an average annualized 11.2%, versus 7.7% for similar funds, and 10.3% for the index.
The new fund is available exclusively through banks, brokerage houses, and insurance companies. Contrafund is offered through financial intermediaries, and its shares can also be purchased by investors directly from Fidelity.