Fidelity® Value Fund

Overview

Over the past few years, a growing number of investors have made sure to include value stocks in their portfolios. While “growth” sounds more impressive, on the surface, academic research shows that beaten-down value stocks actually deliver a higher return over time.

The Fidelity Value Fund uses a multi-manager system, with each manager using a distinct methodology to run a sleeve.

As of November 27, 2023, the fund has assets totaling almost $7.17 billion invested in 256 different holdings. Its portfolio consists primarily of domestic stocks of various market capitalizations. The fund also holds a significant stake in non-U.S. stocks.

Managers zero in on companies they believe to be undervalued relative to future potential.

Fidelity benchmarks the fund to the Russell Midcap Value index. However, managers’ selections may vary significantly from the index weightings.

The top sector holdings are financials, industrials and information technology. The top weightings within the index don’t necessarily correspond. For example, utilities are the second-highest sector in the index, but fifth within the fund.

On a three-year basis, performance essentially tracked the benchmark; on a five-year basis, the fund’s return fell slightly short.

The fund has returned 0.97 percent over the past year and 16.01 percent over the past three years.

In recent years, the value tilt led to slight underperformance relative to the Standard & Poor’s 500 index.

Morningstar categorizes the fund as Midcap Value. The Fidelity Value Fund underperformed the category by less than a percentage point on a 10-year basis.

The fund launched in 1978. In 2010, Fidelity revamped the management style, introducing the multi-manager approach.

In total, there are seven listed managers, each with his or her own investing methodology. Matthew Friedman runs half the fund. To determine fund holdings, managers evaluate factors such as earnings, return on equity, cash flow analysis and growth potential.

The fund has returned 9.79 percent over the past five years and 8.03 percent over the past decade.