Fidelity Distancing Itself From Google
Given the stock market’s huge upward swing yesterday, Fidelity Investments may be regretting its move. Yet, regardless of what hindsight shows it should have done, two of the company’s funds backed away from Google in February.
"Google holdings of the $71.5 billion Contrafund, Fidelity’s biggest stock fund, fell to $2.95 billion at the end of February from $3.63 billion at the end of January," reports Muralikumar Anantharaman.
Also, "The $38.4 billion Magellan, a large-cap growth fund, owned $1.04 billion worth of Google shares at the end of February against $1.81 billion a month earlier, the data show." Those are decreases of 19 and 43 percent, respectively.
Google’s stock, for its part, went up by 5.26 percent yesterday. Unfortunately for Fidelity, Genentech went slightly down; Fidelity raised its holdings of Genentech, a biotech company, during the same period it dropped Google.
Still, an entity as big as Fidelity isn’t likely to chase every single wave. If it stays away from Google on at least a semi-permanent basis, other investors may grow wary of the search and advertising giant. Remember, no one’s announced an end to the recession just yet.