Magellan Fund Reopens to New Investors

With $44.8 billion in assets, the storied fund is not new to reopening to new investors: it was closed once before, from 1965 to 1981. From its inception date of May 2, 1963, when it was managed by Edward Johnson, III, who is now Fidelity’s CEO and chairman, through December 31, 2007, the fund has had a remarkable average annual total return of 18.4%. Managed since October 31, 2005 by Harry Lange, the fund has had seven portfolio managers. Probably the most famous portfolio manager of Magellan–and the one with the longest tenure–is Peter Lynch, who managed the fund for 13 years, from May 31, 1977 until May 31, 1990.

In addition to market opportunity, “Magellan’s investment opportunity set has become broader and deeper, in line with global market trends,” the announcement said. Fidelity has more than doubled the number of research analysts for equities and has revamped and added to analyst career tracks, and has been recruiting experienced analysts as well as business school graduates, according to the announcement.