Lynch created the investment process commonly referred to as “Buy What You Know." Lynch proposed that the person on the street is just as capable of identifying good stocks as a Wall Street professional, and noted that many of his best stock picks came from his experiences with a company as a customer, rather than through usual trade publication or analyst reports. Between 19 the fund averaged over a 29% annual return, making Magellan the best performing mutual fund in the world. Peter Lynch took the reins in May 1977 and remained the manager of Magellan for the next thirteen years. However, the best annual return was 116.08% in 1965, and the best three year record was 68.32% annualized between 19, as the fund was operating with limited assets and oversight. The largest growth of the fund occurred under Lynch's management with a growth in assets invested in the fund from $18 million to $14 billion during his tenure. They believed that the size of the fund was beginning to make it difficult to beat the market. On September 30, 1997, Fidelity decided to close the Magellan Fund to new investors.
Stansky quickly moved out of bonds and into stocks to stop the assets from flowing out. In July 1996, his first month as manager, more than $3.5 billion was taken out of the fund as investors redeemed their shares and the portfolio experienced setbacks. Bob Stansky certainly experienced the most volatility with respect to AUM during his time with Magellan. During Jeffrey Vinik's it grew to $50 billion. During Morris Smith's tenure, AUM grew from $14 billion to $20 billion. The $20 million fund Peter Lynch inherited grew to $14 billion in AUM during his tenure. From the fund's inception in 1963 through 1977 Magellan grew to $20 million in AUM.
5 Harry Lange 2005-2011, drop in assetsįidelity earns its income, like most mutual funds, from fees charged on its assets under management (AUM).4 Robert Stansky 1996-2005, underperformance.3 Morris Smith and Jeff Vinik, 1990-1996.
0 kommentar(er)
