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Magellan back in stocks
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September 6, 1996: 9:31 a.m. ET
New manager Stansky reverses course, shifts assets out of bonds
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NEW YORK (CNNfn) -- Bob Stansky, who took the helm at the Fidelity Magellan Fund in June, is gradually shifting assets at the nation's largest mutual fund back into stocks, data released Thursday revealed.
Magellan-watchers had expected Stansky to reduce some of the $51 billion fund's exposure to bonds and move back into growth stocks in technology, finance, health care and retail -- sectors he preferred when he managed the Fidelity Growth Fund. His predecessor, Jeffrey Vinik, was heavily criticized for shifting assets into bonds last year and most observers expected Stansky to reverse that strategy.
According to data released on Fidelity's Web site, Stansky cut Magellan's bond holdings from 18.1 percent of total assets in June to 15.6 percent in July. He then raised the stake in equities from 79 percent to 82.8 percent. Another 1.5 percent remains in cash, far less than the 15.8 percent Magellan held at the end of January.
Analysts said this move will help steer the fund out of its recent troubles, while attracting new investors and keeping existing ones.
Magellan's top sector holdings remain in energy, durables and heavy-industry. The largest stock holdings also continued to include Caterpillar Inc., Exxon Corp., General Motors Corp. and Deere & Co. And the fund added Royal Dutch Petroleum Co.
For the year, Fidelity said Magellan is down 1.97 percent, compared with a 5.23 percent gain in the bellwether S&P 500 index.
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