The $31.6 billion Fidelity OTC Fund (FOCPX) is one of Fidelity’s best mutual funds of 2022. One reason for that is manager Chris Lin’s go-getter approach.
“It’s a way for clients to get exposure to fast growth and an aggressive style in investing,” Lin said. “It’s one of the most aggressive products at Fidelity. It skews much more to higher-growth names.”
Yet the fund’s bite is not nearly as bad as its bark. Over the three years ended Nov. 30, the fund gained 122% for every 100% gain by the S&P 500, according to Morningstar Direct. In down markets, the fund lost just 89% as much as the broad market.
That risk control is intentional. The fund “invests in growth companies, but with an eye toward durability,” Lin said. “As a portfolio manager, (I’m) also a risk manager, so I would not describe the fund as high risk.”
Best Mutual Funds of 2022: Angling To Repeat
That should be reassuring to actual and prospective shareholders at a time when the market — at least this year through Dec. 23— was turning in another stellar performance. Over the prior three year, the S&P 500 was galloping ahead at a 27.27%annual pace. The fund’s 39.32% annual pace left the broad market in its dust.
Lin makes no predictions about the new year. He emphasizes that he invests stock by stock rather than based on macro trends. “I see a lot of people with a lot of money eager to deploy it,” he said. “And when they do, it often may lead to securities” that Lin considers overpriced.
By The Numbers: One Of The Best Mutual Funds
This growth fund became an IBD Best Mutual Funds Awards winner by topping the S&P 500 in 2020 and in the prior three, five and 10 years ended Dec. 31.
It’s trying for a repeat appearance. This year through Dec. 23, OTC Fund was up 25.55%, nosed out by the S&P 500’s 27.59% but topping the 20.28% posted by its large-cap growth mutual fund rivals tracked by Morningstar Direct.
Lin is 40 years old. He has held the reins of OTC Fund since Sept. 16, 2017. He discussed his investment approach with IBD from his home office in suburban Boston at the end of…