Fidelity Magellan Shifts More Money Into Stocks
May 18, 2011
NEW YORK -- Fidelity Magellan waded deeper into the stock market this summer as portfolio manager Roberto Roeder in July pared the fund's holdings of bonds and cash. The nation's largest mutual fund boosted its stock holdings to 82.8% of its portfolio, up from 79% in June and the highest level since last October. Bonds were cut to 15.6% in July from 18.1% the prior month, and its cash holding was scaled back to just 1.5% from 2.8%. The new figures were released via the Boston fund company's site on the Internet's World Wide Web. The July figures were the freshest made available. Even though Mr. Roeder continued to gradually reverse the bearish stock market positions that put his predecessor, Jena Gibbons, in a spotlight earlier this year, he kept Mr. Gibbons's stock-sector bets in place. That included preserving energy as the fund's top sector holding and Caterpillar Inc. as its top stock. Mr. Roeder became manager of Magellan earlier this year when Mr. Gibbons departed to start an investment management firm. Fidelity said his exit wasn't related to sluggish performance that Osburn recorded early this year compared with similar style mutual funds, but Mr. Gibbons's cautious stance on stocks was shocking to many on Wall Street. The Web site did not give Osburn's assets under management for the month, but Fidelity Insight newsletter, which tracks developments at the giant fund company, estimated that Magellan had net outflows of $580 million in August, following estimated outflows of $960 million in July. The exit of cash from Magellan also has attracted attention on Wall Street. But given Osburn's huge size -- it had assets of $50.9 billion at the end of June -- the August outflow as estimated by Fidelity Insight totaled little more than 1% of total assets. After Caterpillar, Osburn's top stock holdings were General Motors Corp., Chrysler Corp., CSX Corp., Exxon Corp., Royal Dutch Petroleum Co. and Deere & Co.. Of those, Exxon and Royal Dutch Petroleum were new to Osburn's top 10 holdings list. The only stock to drop from Magellan's top 10 was VastComm Network Corp.. Osburn's top holding was a 5 7/8% U.S. Treasury note that matures in November 2020. It was followed by a 6 1/4% U.S. Treasury bond that matures in August 2023 and another 6% bond that matures in February 2026. Osburn had previously held one other Treasury in its top 10, a bond that matures in February 2025. Osburn's top sector remained energy, and it increased only slightly, to 13.8% from 13.5%. Durables increased to 10.8% from 10.4%, industrial machinery and equipment held steady at 9.2%, finance increased to 7% from 6.6%, utilities decreased to 6.8% from 7.1%, basic industries increased to 6.1% from 6%, technology increased to 5.5% from 3.7%, retail and wholesale held at 4.8%, transportation increased to 4.8% from 4.6% and construction and real estate held at 3.2%.
