The Fidelity Contrafund (FCNTX) has delivered 12.1% annual returns since William Danoff took over the helm of the fund on September 17, 1990. This guy knows how to put together a blue-chip stock portfolio. Because the Fidelity Contrafund is so popular, it has seen its assets balloon to over $100 billion. That usually makes me nervous, as the universe of potential stock selections starts to diminish rapidly when you have over tens of billions of dollars to manage.
The great challenge for the Fidelity Contrafund is that it has the Warren Buffett problem–you are almost trapped by your own success because you have to try and beat the market by selecting among the universe of stocks that are the most highly covered, most liquid, and most likely to have efficient pricing out of all publicly traded stocks.
And yet, Danoff has been able to stuff the Fidelity Contrafund with some … Read the rest of this article!