BOISE STATE UNIVERSITY

Fidelity Growth Company

Performance Evaluation

Brad Christopherson

11/16/2011

Fidelity Growth Company is a fund that is categorized as a large growth fund. This report will discuss the fund as a whole and compare it to its category. The core of the fund is made up of big US companies like Apple and Google and some lesser known companies like salesforce.com and Red Hat. The key to this is to find stocks with good growth prospects while maintaining large growth companies that can maintain their growth. “Manager Steve Wymer looks for firms with good growth prospects relative to their valuations. He keeps the Lion’s (majority) share of assets in high-growth stocks from the health-care and technology sectors, but he also makes room for a small crop of turnaround plays” (Davis) . This fund is to be a core asset in an investor’s portfolio. This fund is for investors that want a higher return and are willing to take on more risk. The fund is targeted for a large range of late 20 to early 50 year old investors that tend to want a higher risk and return in their portfolio. The fund can be held for a long time. The fund does not have a load and at an expense ratio of .89% ("Fidelity Growth Company") the fund can easily be for a short or long term investor. The fund focuses on industries that are more volatile with high growth like technology and health care. This paper will break down the fund and compare it to a large growth category and the Russell 3000 TR USD index.
Table 1 ("Fidelity Growth Company") shows that the fund creates a higher total return than the large growth category and the Russell 3000 index. In 2008 when the market went down the fund lost quite a bit more compared to its category and the index. 2008 was the worst year for the fund but the average for the fund still outperforms the category and the