Fidelity Contrafund Case Summary

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Fund overview
Fidelity Contrafund is an active equity mutual fund aimed at companies and public investors. This fund began for investment at 17th May, 1967 in the U.S.. The ticker of Fidelity Contrafund is FCNTX.O. The nominated benchmark index is the S&P 500 (Eikon code is .SPXTR). Moreover, $2500 is the minimum amount of initial investment.

Fidelity Contrafund is operated by the Fidelity Management & Research Company that is one of the largest and earliest investment fund managers in the U.S. (Accounting to statistics, since Fidelity Worldwide Investment was established in 1946 by Edward C. Johnson 2d, Fidelity has more than 40,000 employees and 180 Investor Centers).

There are two charts about quarterly total returns and annual total return of Fidelity Contrafund in Appendix 1 and 2. The average annual total return is 13.50% from 1967 to 2014. The investors can get $25,978.9 on the end of 2014Q4, if they
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The table shows that the performance of Fidelity Contrafund has a remarkable growth, as time goes by, the speed of growth rate is faster and faster. And compare with Fidelity Contrafund, these four benchmarks are obviously far-less growth. Fidelity Contrafund has obtained 13.3% annualized until 1st July, well ahead of about 10.1% of the S & P 500. And there are more than 200 company stocks on the Fidelity Contrafund portfolio.

A professional financial website Morningstar appears that the yields of Fidelity Contrafund was sharp decrease from 2007 to 2009, when Global Financial Crisis was happened, fortunately, the managers use some positional trading strategies to cut loss and make the return back. Thus, since February 2009, Fidelity Contrafund has an amazingly outperformance. The solution of risk-adjusted is compelling.


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