Fidelity is attempting to ease some of the strain on its overstuffed small-cap funds by launching yet another one.
The financial services giant filed with the Securities and Exchange Commission last month to launch the Fidelity Small Cap Opportunities Fund, which will invest in the stocks of both "growth" and "value" companies in the U.S. and abroad.
Manager Lionel Harris has been with Fidelity since 1995 and has run the firm's $786 million Small Cap Growth fund (FCPGX) since April 2005.
Morningstar analyst Dan Lefkovitz says Harris has put together a decent record over the past decade. But he's concerned that capacity could be an issue, because Fidelity already runs a lot of money in small-cap funds."
Small cap funds are particularly susceptible to the danger of asset bloat. As assets rise in a small cap fund the more difficult it is to find good small-cap stocks in which to invest.
Fidelity is attempting to ease some of the strain on its overstuffed small-cap funds by launching yet another one.
The financial services giant filed with the Securities and Exchange Commission last month to launch the Fidelity Small Cap Opportunities Fund, which will invest in the stocks of both "growth" and "value" companies in the U.S. and abroad.
Manager Lionel Harris has been with Fidelity since 1995 and has run the firm's $786 million Small Cap Growth fund (FCPGX) since April 2005.
Morningstar analyst Dan Lefkovitz says Harris has put together a decent record over the past decade. But he's concerned that capacity could be an issue, because Fidelity already runs a lot of money in small-cap funds."
Small cap funds are particularly susceptible to the danger of asset bloat. As assets rise in a small cap fund the more difficult it is to find good small-cap stocks in which to invest.
Fidelity launched one small caps in 2005: Fidelity International Small Cap Opportunity (FSCOX), and two in 2004: Fidelity Small Cap Value (FCPVX), and Fidelity Small Cap Growth (FCPGX). They also run the largest small cap fund in the business, the $39 billion Fidelity Low Priced Stock fund (FLPSX).
Other small cap funds from Fidelity
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