Danoff: I think over time, maybe, you grow as an individual and you gain experience. I'd say part of the wisdom of experience is to know where your circle of competence begins and ends. Joel Tillinghast, who's the great manager of the Low-Priced Stock fund, and I have done very well here at Fidelity. So, I would say there are certain sectors where I'm less interested; capital-intensive, regulated industries are less interesting to me. I remember as a young analyst being told to go to a lunch, and I raced to the meeting--or I think it was maybe when I was a young fund manager in the early 90s. Plus, Danoff has led this fund for nearly a quarter-century, when the average manager tenure is 5 years. Or there's a better mousetrap that comes out of the competitive set that hurts you a lot. And I was lucky enough to start at Fidelity and work with Peter Lynch and some of the other great fund managers here, Bruce Johnstone and George Vanderheiden. He is affiliated with Cedars - Sinai Medical Center. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. And I think that all experienced investors have made mistakes and are more aware of when they're approaching thin ice. Maybe that's a good place for us to start. His office accepts new patients. You've always been different in your approach. So Hey, that sounds really good. The duo later evolved into Bill and Taffy and toured with Denver in the early '70s. Sep.17 -- Will Danoff, who as manager of Fidelity's Contrafund has beaten the S&P 500 for three decades, makes the case for active management in the era of E. Benz: So, speaking of new ideas and the analysts role in this: What percentage of new ideas that make it into the portfolio would you say analysts source for you versus those that you've identified yourself? This site is protected by reCAPTCHA and the Google And again, experience plays a role here. I have never gone to management and said, I don't think I can beat the S&P 500. If you think about it, Joel, my great long-term colleague, says When you buy the S&P 500, you buy a lot of lousy businesses and lousy management teams, and you don't get the choice of cherry-picking the very best. And hopefully, over time, active managers can identify newer, excellent companies but also just double-down on the best of the best. The band recorded for John Denver's Windsong label. I've never heard of this company, and it looked like they were growing. And another 45-minute presentation had to be done. The long view has to be that equities are going to perform better than bonds for the foreseeable future. Why haven't you done those things? Seems like, maybe that's a conscious choice you've made in how it is you're going to spend your time and focus as a portfolio manager. Dr. Dudley S. Danoff is a Urologist in Los Angeles, CA. The subject line of the email you send will be "Fidelity.com: ", Will is dedicated to the long-term benefits of active management. So, in your opinion, what do you think we got wrong? The cheap stock reflects how F-Prime . 5 years: Fidelity Contrafund 8.52%, S&P 500 Index 9.42%. India is emerging as an important experimental ground for a lot of new technology as well. I mean, I was the retail analyst at Fidelity in the mid 80s. Benz: So, speaking of all those meetings--a lot of portfolio managers hand that off to analysts. And often, it's really just, Is this company going to be bigger and better and stronger five years from now than it is today? Why are you here? And often there is a story to be told, and they want to express it to potentially large shareholders, and sometimes there is a subtext, and you've got to try to anticipate what are the other person's objectives. Read our editorial policy to learn more about our process. And do you expect that to ramp up further in the future? The American Funds team managed about $138.9 Billion; about a quarter larger than Contrafund. So, I think you mentioned the word edge, I don't think about edge at all. It's harder for smaller-cap companies in certain industries to gain traction because the larger companies have just very strong winner-take-most type competitive positions. Will runs a number of Fidelity equity strategies, best known of which is Fidelity Contrafund, a mutual fund he has been managing since September 1990. 14. Eclipsing the market over decades is astonishing. So, it's a little easier. That's a really good point. William Thomas Danoff (born May 7, 1946) is an American songwriter and singer. Clearly, there is survivor bias in the S&P 500, so it is hard to add value over time. And that often is hard for managements that have done so well. So, you sell a little and then you realize you overreacted. And I'm constantly looking for better ideas. I like to call companies. By using this service, you agree to input your real email address and only send it to people you know. And I think as human beings, it's a lot easier to do the latter. Indeed, Contrafund was recently home to more than $120 billion in assets and has ranked among the world's largest funds for many years. And, as you know, there were constraints on when you can book and only one class and no free food and all that stuff. Timely insights from Fidelitys portfolio managers and analysts on navigating volatility and long-term investing. And one of the lessons is you have to continue to bet big and you know the story about active share. The value of the fund's domestic and foreign investments will vary from day to day in response to many factors. And in talking to company management--what do you think you get from that experience? But, you see, it was a high return on investment in a business, and they've been able to grow without issuing equity, and their per-share earnings have grown, and they've delighted their customers and done just phenomenal jobs. How we use your information depends on the product and service that you use and your relationship with us. This copy is for your personal, non-commercial use only. The Fidelity Contrafund is an actively managed domestic equity fund that seeks long-term growth of capital and can be an appropriate core equity holding for investors seeking broad exposure to companies we think have "best-of-breed" qualities and are underappreciated by other investors. Learn How rich is He in this year and how He spends money? Family: Nymphaeaceae. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. And this is always this debate I have when I think about biotech as a sector, and there are some very smart scientists who are pursuing important on medical needs. You haven't appeared in commercials or written books or taken to Twitter, and you could do any of those things and gain a big following and greater notoriety. [1] He is known for " Afternoon Delight ", which he wrote and performed as a member of the Starland Vocal Band, and for writing multiple hits for John Denver, including "Take Me Home, Country Roads". Learn about Fidelity's active equity exchange-traded funds (ETFs). Develop and improve features of our offerings. But you and your listeners--you're sophisticated investors. No patient rating & comments. We've detected you are on Internet Explorer. You know, if you think about it, Jeff, the larger companies in the S&P now are $1 trillion market caps. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. Will Danoff, portfolio manager of Fidelity's Contrafund (FCNTX), is arguably a more impressive investor than Peter Lynch. And, over the last couple of years, we've all learned that they're riskier than perhaps people thought. William Danoff is the single manager of the Fidelity Investments' flagship mutual fund Contrafund. Will Danoff32 years Family (1) Spouse And, again, paying attention and monitoring out-of-favor groups and trying to identify I can remember when everyone hated the airline industry. You just deal and--we've got a lot of colleagues that I've known for a long time--so, I know their strengths, and I try to learn from my mistakes, but mistakes are part of this business. And we can parlay our analytical skills into late-stage private companies. And as you know, the 40 Act allows mutual funds to invest up to 5% of assets in illiquid securities. And whether that informs the way you manage the portfolio. ! (Disclaimer: This recording is for informational purposes only and should not be considered investment advice. Contrafund is one of Fidelity's largest mutual funds holding over $129 billion in assets, making it the largest single-manager mutual fund in the world. For me, it's the ability to make big bets it's harder. Ptak: So, why don't we get things started. He and Nivert, who would later become his wife, joined forces in a duo that was called Fat City. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. William Danoff (born 1959-60) is a vice-president and portfolio manager of Fidelity Contrafund, since 1990. And to monitor what's happening. Benz: You can follow us on Twitter @Christine_Benz. Morningstar does not guarantee the accuracy, or the completeness of the data presented herein. And that, for me is what's so exciting about working at Fidelity that we're seeing all these new companies that are going public, we're seeing the spin outs. Jeff Ptak is an employee of Morningstar Research Services LLC. Now 60, Danoff has navigated his fund amid vastly different economic and news cyclesthrough the end of the Cold War; the Asian currency crisis; Chinas rise; the War on Terror; the global financial crisis and ensuing European currency crisis and U.S. credit downgrade; and now, the coronavirus pandemic. So, seven or eight years ago, there were a lot of very good opportunities. There are always reasons to worry. 5 stars. They made some mistakes and learned from their mistakes. . So, I don't know that many great investors who aren't great analysts. This year, he marks three decades of managing the $131 billion Thanks so much. He graduated from YALE UNIVERSITY in 1963. Opinions expressed are as of the date of recording. You can go to YouTube, I think, and search for me or the letter advertisement at Fidelity. And then I went to Dreamforce, which is Salesforce.com's user conference out in San Francisco. They're low capital intensity because they outsource their manufacturing. They have one child. 2. Permanent link Go to YouTube and hear the story. I have told your colleagues--Katie's done a great job monitoring what I've done at Contra over many years--that if I didn't think I could beat the S&P 500 I would ask to close the fund. But when per-share earnings, per share free cash flow is growing, then I've got a lot of time. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. The world, in many ways, has gotten smaller, and what's happening in China is very important to the rest of the global economy. Past performance is not a guarantee of future results. Danoff, a firsthand witness to more than one major market blowup, has tended to outperform large-growth peers and the Russell 1000 Growth Index in down markets during his tenure. [1] At US $129 billion, Contrafund is the largest actively managed stock or bond mutual fund run by one person. What do you have on your list that would fit that bill even if it's more expensive than the average company in your group? So, it's that's sort of give-and-take. Do you wait for FDA approval? Benz: So, you've mentioned circle of competence a couple of times. But I would say capacity is one that I think a lot about. Danoff has a degree in history from Harvard and an MBA from Wharton. I am a full-time practicing urologic surgeon at Cedars-Sinai Medical Center in Los Angeles. Do you wait for, God forbid, revenue and profit? I don't whip the fund around. I'm considering fcntx- fidelity contra fund- .82 ER. Danoff, 56, was trained by the formidable Peter Lynch, who managed Fidelity's Magellan fund until 1990. . For his accomplishments, Morningstar named Will its Domestic-Stock Manager of the Year in 2007. I do feel, honestly, Christine and Jeff, that a large fund can only do so well and that smaller funds may do better than I do. The views and opinions of guests on this program are not necessarily those of Morningstar, Inc. and its affiliates. Fidelity Contrafund's longtime star manager on why he runs money, how his definition of "edge" has evolved, the best way to engage with analysts and company management, and more. 9/17/1990-12/31/2022. But at the time, people weren't paying attention to airlines and Europe was sort of a no growth, low growth space. And Danoff "doesn't exhibit any signs of weariness or burnout," says Lowell. William Danoff: Thanks, Jeff. That includes . Please see additional standard performance information. Benchmark returns include reinvestment of capital gains and dividends, if any, but do not reflect any fees or expenses. When he was just 15 years old, he created his first original song and produced it on his own. They've got their EarPods, they've got an iPad, they've got a computer. And I hope everybody has a great year. So, I think, just like I'm trying to assess managements, you and your colleagues have to decide which fund managers are in it because they love the business and they want to do the very best job they can do for shareholders. All Rights Reserved. Dr. Danoff has a research interest in outpatient joint replacement, rapid recovery protocols and multimodal pain regimens to decrease postoperative pain. So, Fidelity can monitor virtually every public company in the U.S. We can monitor every industry in the world. And then there is the incomparable Will Danoff, manager of Fidelity Contrafund (symbol FCNTX ), a member of the Kiplinger 25. In 2007, Morningstar named him ``Domestic Stock Manager of the Year``. Maybe it's growing faster than people think. We're thrilled to have him as our guest. Danoff received 46,154 Alibaba shares that cost $3,432, or 7 cents apiece, according to an annual report filed by his family's private charitable foundation. But we're working for the shareholders here at Fidelity, and I take that quite seriously. So, you know, I do have a lot in technology. And I'm aware of the risks of that profile, but at the moment, I think that's the best-selling taste. And I've been with the Contrafund for 29, almost 30 years. Fidelity does not guarantee accuracy of results or suitability of information provided. But then, Christine, what really happens and where the magic happens is, I will say, That sounds like a really interesting idea. And again, it goes back to who you are, and maybe certain money managers have to justify their higher fees by being out there pressing management, but you know, it's a very good point, Christine. I'm aware of that. It is not possible to invest in an index. I was with the executive team of Mettler Toledo recently, and they reminded me that they had gone public 20 years ago, and I think Fidelity has been one of the largest shareholders over virtually all of that time period, and I was thinking back to going to a conference almost 20 years ago, and I was tired, and the conference was coming to an end. So, I went, and I was really excited about the story. I tend not to do well in what I call v bottom industries, like in semiconductors, where things are really bad and then all of a sudden the light changes and all of a sudden things are really good and things have bottomed and are getting better. Since he took over on Sept. 17, 1990 . So, anyway, I would say again, for me, it's sort of like the chef tasting the soup, Jeff. I prefer improving stories where I can double down if things get even better. Surgical Oncology, Urology 310-854-9898 Fax: 310-854-0267. For his accomplishments, Morningstar named Will its Domestic-Stock Manager of the Year in 2007. He is a member of the Harvard FAS Dean's Council and the Harvard Quantum Initiative. And as investors, we all need to play to our strengths and be who we are. So, again, when the only part of the company that's growing is the number of shares outstanding, that's a concern, or you know, when losses are growing, that is almost a I don't have time for that we're finding. How has that changed in the last few decades in which you've been running money? Provide specific products and services to you, such as portfolio management or data aggregation. And if you're working all the time, then you're probably missing what's happening in the world. And they were a relatively small player with a differentiated product and mostly selling balances to labs. Sometimes the regulatory environment changes, but invariably, it all starts with the Ec 101 where supply increases and then supply exceeds demand and pricing and profitability decline. Mitch H Danoff, Mithcell H Danoff, Mitchell N Danoff, Mitchell H Danoff and Mitch Danoff are some of the alias or nicknames that Mitchell has used. Global Nav Open Menu Global Nav Close Menu; Apple; Shopping Bag + Search apple.com. And there are a lot of really good companies out there, but what I'm trying to do, as we talked about earlier, is find the exceptional companies and trying to bet bigger on the exceptional ones. Adam Danoff net worth is $900,000. William Danoff was born on 1960. Popular As. And if you haven't seen it, it's a very good letter. Copyright 2023 Morningstar, Inc. All rights reserved. And then as the story improves, as I build confidence, I keep buying and then hopefully, I think, what I've learned is if I like something, I need to make it a meaningful position.
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