Is Fidelity Contrafund a Good Investment for Long-Term Growth

Fidelity Contrafund has consistently delivered impressive long-term returns, with an average annual return of 13.4% over the past 20 years, significantly outperforming the S&P 500.

This remarkable track record is a testament to the fund's contrarian approach, which involves investing in high-quality companies that are undervalued by the market.

The fund's manager, Will Danoff, has been at the helm since 1990 and has a reputation for making shrewd investment decisions that have paid off handsomely for investors.

As a result, Fidelity Contrafund has become one of the most popular and respected actively managed funds on the market, with over $130 billion in assets under management.

Fidelity Contrafund primarily invests in large-cap U.S. stocks, with 91.47% of the fund in domestic equities and 5.75% in international equities.

The fund has a mix of bonds, cash, and other investments, but its exposure to domestic large-cap growth stocks means it shouldn't make up the majority of an investor's portfolio.

As of March 31, 2022, Fidelity Contrafund has $126.37 billion in assets under management, a significant amount.

The fund's expense ratio is 0.81% as of March 1, 2022, which is relatively low.

William Danoff, the fund's manager since 1990, has a strong educational background, graduating from Harvard University in 1982 and earning a master of arts degree and an MBA from the University of Pennsylvania.

Danoff's investment objective is to achieve capital appreciation by picking good growth and value stocks that are not recognized by the public.

The fund's holdings include best-of-breed companies with strong free cash flows, above-average returns on capital, and strong management teams.

Through bottom-up fundamental analysis, the fund's management identifies companies poised for sustained, above-average earnings growth not reflected in the stock’s price.

The fund has posted impressive returns, with an annualized one-year return of 9.41%, a three-year return of 19.04%, and a five-year return of 17.83% as of March 31, 2022.

The performance of Fidelity Contrafund is impressive, with a 1-year return of 9.41% as of March 31, 2022.

Over the past three years, the fund has seen a remarkable return of 19.04%, indicating a strong growth trend.

A 5-year return of 17.83% is a notable achievement, demonstrating the fund's consistent performance over time.

Here's a summary of the fund's performance:

These returns are annualized, meaning they're calculated based on the fund's performance over the specified period, providing a clear picture of its growth potential.