Fidelity Investments to Open Magellan After 10 Years (Update4)
By Sree Vidya Bhaktavatsalam
Jan. 14 (Bloomberg) -- Fidelity Investments is opening Magellan Fund to new investors for the first time in more than a decade as it seeks to capitalize on a turnaround in performance by manager Harry Lange.
Lange, who took over Magellan in October 2005, beat 82 percent of rivals in 2007 as the $44.8 billion fund posted its highest returns in 14 years. Magellan, once Fidelity's largest fund until it was hurt by the bust of the Internet boom, will take new deposits starting tomorrow, the world-biggest mutual- fund manager said today in a statement.
Fidelity's net deposits have lagged behind Valley Forge, Pennsylvania-based Vanguard Group and Los Angeles-based American Funds because of poor returns and because six of its funds have been closed since 2006. The Boston-based company shut four of its most popular funds in April 2006, including the $81 billion Contrafund, its largest, saying they had gotten too big.