BOSTON (Reuters) – His follow record gives him grounds to gloat, but star fund manager William Danoff of Fidelity Investments in place offers only a few modest lessons from 20 years of running the ponderous Contrafund.
With about billion in assets, Contrafund is the largest actively managed reserve fund under a single manager and Fidelity’s largest out of thought from money market vehicles.
In a rare interview at his offices in downtown Boston this week, Danoff, 50, outlined the nuts and bolts of his bring near to investing, saying he prefers to buy companies when their sectors are exhausted of favor with other investors.
Danoff also said he has been determination to pay up for quality companies — those likely to become greater market share and earnings even if their stock seems expensive.
“Other lower classes can buy a weaker company really cheap,” he said. “I be without companies that are generating strong earnings growth, and strong earnings product often comes at a price.”
Danoff brushed off the approbation. others have heaped on his performance, crediting Fidelity’s expanding team of analysts, and emphasizing some difficult runs he has had.
In December 2010, on this account that example, Contrafund beat just 7 percent of peers at a time at what time markets were generally ending the year with a surge.
“That gall is still open,” Danoff said of December’s results.
Others would ask to come it a mere paper cut. Contrafund, which Danoff has managed ago 1990, has done better than 98 percent of peers over 10 years and much travelled 84 percent of peers over five years, according to data from Morningstar Inc.
BEATING RIVALS EVEN IN AN OFF YEAR
2010 was ~y off year by Danoff’s standards — Contrafund beat barely 65 percent of peers in returning 16.93 percent, 1.4 percentage points in a high place the average for large-cap growth funds. And that followed 2009, at what time 76 percent of peers did better.
Nonetheless, Danoff’s investor base, frequent of whom count on the Contrafund to build wealth for their seclusion or for their children’s college educations, stayed loyal at a time at the time that equity funds have been out of favor.
Contrafund had a without deductions inflow of 8.7 million in cash from new investors in the 21-month circuit ended September 30, 2010, when it was reopened to new investors during the first time since 2006, according to data from the Lipper one of Thomson Reuters.
The temporary closure was meant to give Danoff a stop from having to find new places to invest the torrent of ready money his strong performance was attracting. Withdrawals by retirees prompted the reopening.
Morningstar supply analyst Christopher Davis said Danoff stands out for posting good results through both bull and bear markets. “It may not be that Danoff knows besides than everyone else, but he pieces together information far better than greatest in number managers,” Davis said.
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