Re: Evaluating Managed Funds
Some interesting info on Fidelity:
William Danoff, who has managed Contrafund for 15 years, was chosen to manage a new fund, Fidelity Advisor New Insights, in July of '03. New Insights is also a large-cap growth fund, and has very similar holdings to Contrafund. However, New Insights is purchased through a broker, and carries a 5.75% front-end load(compared to no load) and a higher expense ratio (1.22 versus 0.94).
Here is how the two funds currently stack up:
Total Assets: Contra $60,093 mil., NI $1,014 mil.
2004 Total Return: Contra 15.06%, NI 18.75%
2005 Total Return: Contra 16.23%, NI 19.01%
*total returns are net of expenses but not loads.
If you like the Contrafund management style but are concerned by the huge size, this may be a good option to look at. Many people are understandably distrustful of the "sell-side" of the financial world. But using a financial planner/advisor who works on commission is not always as costly as it may seem- if that person is competent and trustworthy. Which is a huge if.
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