One of the interesting things about mutual funds is that they tend to retain the halo effect of the mutual fund superstars even after those fund superstars are no longer around. One such case is the Fidelity Magellan Fund. It built up all of this brand equity when Peter Lynch was running it for thirteen years and giving investors returns of 29.3% annually. Lynch ran it from May of 1977 to May of 1990, and the fund increased in size from $20 million to $13 billion by the time that Lynch let go of the reins.
The fund fell apart under the management of Robert Stansky and Harry Lange. Under Stansky, the fund … Read the rest of this article!