Fidelity Advisor Technology's manager is not new to the sector, but he is still relatively new to this fund, so this strategy keeps its Morningstar Analyst Rating of Neutral.
A seasoned technology analyst has taken over here. Adam Benjamin succeeded Nidhi Gupta as manager in the latter half of 2020. Benjamin, who hails from Fidelity’s Institutional Asset Management arm, has been a Fidelity semiconductor analyst since 2011 and was a sell-side technology researcher for 11 years before that. He’s been FIAM’s global tech sector leader and a sleeve manager of two institutional separate accounts since 2014, but he’s only recently started building a solo track record; he took over Fidelity Select Semiconductors FSELX in March 2020. Benjamin has solid credentials, but he's this fund's third manager since 2018 and is in the process of proving himself.
So far, Benjamin has made incremental, rather than dramatic, changes. Like Gupta, Benjamin relies on his own fundamental research, as well as that of Fidelity’s vaunted tech analyst team, to find companies with secular tailwinds filling their sales or benefiting from cyclical or company specific upswings. As a semiconductor expert, Benjamin generally favored more traditional tech names over the consumer-oriented Internet stocks that Gupta, a former consumer stock analyst, owned. Indeed, in the year ended July 2021, this fund added stakes in Cisco Systems CSCO, F5 Networks FFIV, and Microchip Technology MCHP. Benjamin, who is used to running more-concentrated portfolio sleeves at FIAM, also kept the portfolio focused on about 50 public stocks, but nearly doubled its number of private companies to almost 20. Those positions amount to less than 2% of assets but still add some speculative risk to the portfolio.
Since the start of Benjamin's tenure through the end of September 2021, the fund had beaten its peers and relevant benchmarks, though over a short time period and with more volatility, as measured by standard deviation.