The diversified investment fund strategy of the Fidelity Contrafund (FCNTX)
According to its prospectus filing on the U.S. Securities and Exchange Commission EDGAR system, the investment strategy of the Fidelity Contrafund is to invest primarily in common stocks and particularly in the “securities of companies whose value Fidelity Management & Research Company believes is not fully recognized by the public.” The fund may invest in growth and value stocks from U.S. and non-U.S. issuers. Fidelity uses “fundamental analysis of each issuer’s financial condition and industry position and market and economic conditions to select investments.”
Since April 2006, the Fidelity Contrafund has been closed to new investors, although existing shareholders can continue to make purchases. Shares can be purchased directly from Fidelity without a sales load charge.
The Skilled Investor’s Fund Authority Score system
Fund Authority Scores rate mutual funds and exchange traded funds (ETFs) on the most important economic factors that influence individual investors’ net long term diversified investment fund performance. The Skilled Investor developed the Fund Authority Score system to provide individual investors with concise, objective, and realistic summaries of mutual funds and ETFs for comparisons within investment asset classes.
For a directory of the Fund Authority Score reports of other mutual funds and ETFs, go here. When you go to this Fund Authority Score directory, you can easily find a list of all fund reports at the bottom of each article for that particular investment asset class. For more information about how a Fund Authority Score is developed for each mutual fund or ETF, go here.
The Fund Authority Score for the Fidelity Contrafund (FCNTX)
The table below presents the Fund Authority Score and other information for the Fidelity Contrafund.
Using an integer scale ranging from -10 to +10, Fund Authority Scores for equity investment funds measure five factors:
1) annualized management and investment sales expenses (40% weighting), 2) annual trading costs implied by investment fund portfolio turnover (30% weighting), 3) inferior and superior historical performance (20% weighting), 4) minimum fund maturity (5% weighting), and 5) minimum fund size for operating efficiency (5% weighting).
Fund Authority Summary for the Fidelity Contrafund (FCNTX) Fund Authority Summary Fidelity Contrafund Fund Authority Score (This fund has been closed to new investors since April 2006.) FUND AUTHORITY SCORE (scale of -10 to +10) 5 FUND AUTHORITY SCORING COMPONENTS A) Management expenses & sales [...]