Fidelity Investments fired one of their investment managers, Harry Lange, on Tuesday.The firm said he will no longer manage the Magellan mutual fund, once the largest in the nation.
Lange, who’s led the Boston-based Fidelity Magellan fund since 2005, is the latest in a series of managers who failed to repeat the success of famed stock picker Peter Lynch, who retired in 1990.
Boston-based Fidelity’s stock funds have struggled to evolve beyond the star manager strategy that worked well in the 1980s and 1990s. Last year, equity investors withdrew over $25 billion as its funds posted middle-of-the-pack three and five-year performance.
Magellan once had more than $100 billion in assets during the 1990s. When Lange took the helm, the fund fell from $52 billion to $17 billion, Reuters reported.
Lange’s financial picks were to blame for the losses. His stock picks including AIG and Wachovia lead to an almost 50% loss in 2008, the report said.
Fidelity announced Lange will be replaced by Jeff Feingold, a Fidelity veteran who has a proven track record at the firm.
He will be charged with turning around the struggling Magellan fund.
Feingold, 40, who’s been with Fidelity since 1997, has been successful inside the firm on smaller funds.
He’s been running Fidelity’s Trend Fund since 2007. That fund gained an average of 5% annually over the past three years, outperforming 90 per cent of similar funds, Reuters reported citing data from Morningstar.
Now, he’s faced with a daunting task.
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