Family: Nymphaeaceae. You know, you think about the great Warren Buffett. I think they're managing their size very, very well. And I've been with the Contrafund for 29, almost 30 years. 8/12/2019. Maybe that's a good place for us to start. E. rosea has become invasive and has exerted a major ecological impact on the native Hawaiian snail fauna. Benz: We were hoping you could touch briefly on the role of private firms in the portfolio, perhaps talk about what percentage of time you spend researching private firms--you reference them earlier in the conversation, that theyre maybe a bigger part of your thought process than they were years ago. All Rights Reserved. To make it into the starting lineup is not easy. Will Danoff has been the fund manager of the Contrafund at Fidelity investments since 1990. Finally, we'd love to get your feedback. And that often is hard for managements that have done so well. 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. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. This is sort of who I am. I am trying to reduce my turnover. I'd say a healthy research department is a joint effort. 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. (Disclaimer: This recording is for informational purposes only and should not be considered investment advice. I feel really lucky to be here. Go to YouTube and hear the story. Masters in Business. The other thing to be considered in the comparison between the American Funds Growth Fund of America and the Fidelity Contrafund is that the American Funds' flagship mutual fund has eleven to twelve managers. So, margins for the S&P 500--both operating margins and free cash flow margins--have improved nicely in the last 15 years. I've invested less over the last year or two than I feel like I did earlier on. Will Danoff, manager of the $230 billion Fidelity Contrafund, told Bloomberg that there's a "demographic issue" for mutual funds: Gen Z is not . India is emerging as an important experimental ground for a lot of new technology as well. For his accomplishments, Morningstar named Will its Domestic-Stock Manager of the Year in 2007. You know, what I tell the team is, When in doubt, let's call the company. And again, as a large shareholder, I have that opportunity to just call the company, or the Fidelity systems are good that I can pull up every weekend the research notes that have been written on my top 50 positions, and the top 50 might be 65% of the fund. And that's one of the challenges--we talked earlier about size--that it's harder for me to make a new idea a meaningful bet. You think about your own life: If you're strong in one area, you don't necessarily want to change, and managements sometimes have difficulty changing because they've been so successful. He's a graduate of Harvard University and earned his MBA at the Wharton School of the University of Pennsylvania. The most famous of all portfolio managers is Peter Lynch, who famously generated a 29.2% annual return for 13 years while managing the Magellan Fund. And the entrepreneur and founder is able to build a team, and I think before it's all over, maybe it will be wise to wait until the company is public. Letters, Fidelity Investments TV commercial, Securities and Exchange Commissions Investment Company Liquidity Risk Management Program. And as investors, we all need to play to our strengths and be who we are. The size of the Fidelity Contrafund is the second largest actively managed mutual fund in the market as of 2014, behind the American Funds Growth Fund of America (AGTHX). So, it's a little easier. They're low capital intensity because they outsource their manufacturing. Current performance may be higher or lower than what is quoted, and investors should visit Fidelity.com/performance for most recent month-end performance. Drew Angerer/Getty Images. 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. I think the book of business is about $185 billion now, maybe a little higher. Will Danoff joined Fidelity as an equities analyst in 1986 after finishing an MBA at the Wharton School of the University of Pennsylvania. Also learn how He earned most of networth at the age of 31 years old? So, you sell a little and then you realize you overreacted. So, I'd say it's a very healthy give-and-take and dialogue. The management teams come to Fidelity or want to call Fidelity when they're embarking on a new strategic direction or after a big strategic move has been made, whether it's a merger and acquisition, or when they appoint a new executive to run the company. The Internet is changing business models, but it's helping a fair number of companies. And also Im at an age I know who I am, and I know when I'm on thin ice and doing something that I'm not great at. Ann Danoff, MD Chief, Medical Service CPL Michael J. Crescenz VA Medical Center Department of Medicine 3900 Woodland Ave. Philadelphia, PA 19102 Office: 215-823-5800 ext. We so appreciate the time and insights you've shared with us and our listeners today. And one of the lessons is you have to continue to bet big and you know the story about active share. The first is, I was just curious how you think about the path to outperformance, whether you're conscious of the need to produce a few, call them supercompounders. And we talked about the long view. 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. And it's an iterative game. I would say the key, again, when in doubt, call the company, when in doubt, assess company A versus the other companies that you really like. Permanent link He subsequently . TOP 2.5%. 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. Learn How rich is He in this year and how He spends money? Will Danoff, portfolio manager of Fidelity's Contrafund (FCNTX), is arguably a more impressive investor than Peter Lynch. I mean, it's great, and clearly, culture starts at the top, but when you have access to people who are making the decisions, who are actually out in the field seeing the competitive response or knowing the challenges of delighting the customer, that can really, really help, and I think larger funds like Contrafund have that advantage to do more in-depth research. How high are expectations? Market corrections occur, so staying the course with a skilled manager may benefit shareholders over the long term. 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. So that idea and global markets that enable continued growth--so that's a very sweet combination for shareholders: low capital intensity, high margins, and growth. You can go to YouTube, I think, and search for me or the letter advertisement at Fidelity. How have your priorities changed? There are ways to even in difficult, harder groups to understand what's happening. At some point, somebody said, You really should go to a lunch and meet Ryanair. And I said, Really? And they're the low-cost operator in Europe. The band recorded for John Denver's Windsong label. Benchmark returns include reinvestment of capital gains and dividends, if any, but do not reflect any fees or expenses. 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. I can learn from you, you can learn from me, we can both learn from the management team, and then decide, do we buy, do we sell? There are some tricks to the trade that I implement. Terms of Service apply. We recommend you to check the complete list of Famous People born on . I would say I probably see two or three private companies a week. This chart is not intended to imply any future performance of the investment product. This copy is for your personal, non-commercial use only. But privates are, again--if you pick the right entrepreneur and you pick the right opportunity, and you have the expertise-- But they tend to be more time intensive, the companies tend to be less mature, management teams tend to be a little less mature. Are we going to get sold again to some conglomerate or to some private equity firm?. Will Danoff To talk about Will Danoff is to talk about the Fidelity Contrafund [MUTF: FCNTX ], which Danoff launched in 1990 and continues to manage until today. At the helm of Fidelity's Contrafund,. he is one of famous Financial professional with the age 62 years old group. Popular As. And this letter was written by the parents of a young child, 1 year old boy. When you look back over a 20-year time horizon, you just see a pattern that you want to replicate going forward. William Danoff (born 1959-60) is a vice-president and portfolio manager of Fidelity Contrafund, since 1990. 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. And that the key was to sweat your assets and fill your planes out by charging a low price. Dr. Danoff has also served as President of the Association of Program Directors in Endocrinology and Metabolism (APDEM), and in that role, was a Charter Member of the APDEM/AACE Joint Liaison Education Committee. Past performance is not a guarantee of future results. He's beat the S&P 500 300 basis points. Contrafund is so large (about. Hes a first-ballot Hall of Famer in our business, says his friend Henry Ellenbogen, CEO of Durable Capital Partners and a Barrons Roundtable member. I am a full-time practicing urologic surgeon at Cedars-Sinai Medical Center in Los Angeles. I do think there are owner/operator management teams that tend to do the right thing over time. That includes . Provide specific products and services to you, such as portfolio management or data aggregation. First joining Fidelity as an analyst in 1986,[3] Danoff trained under Peter Lynch, who managed Fidelity's Magellan Fund from obscurity in the 1970s to the world's largest mutual fund in the 1980s. And then hopefully, in six or nine months, we'll be able to follow up and say, How's it going? or at the end of the year, say, how did you do and what else are you going to change?, Thats just the way life is--you got to keep moving forward, and do the best you can, but I personally like to interact with management teams, and I owe it to my own shareholders to say every day I'm coming to work, I'm looking for new ideas. Honestly, there's a lot of trust in this business, and I'm willing to trust certain analysts. He's a graduate of Harvard University and. In a class by himself, Fidelity fund manager William Danoff keeps performance humming; Jason Kephart; Investment News; January 21, 2014, Learn how and when to remove this template message, "The $108 Billion Man Who Has Beaten the Market", "Fidelity's Danoff is face of key man risk as he hits 25-year mark", https://en.wikipedia.org/w/index.php?title=William_Danoff&oldid=1089496623, This page was last edited on 24 May 2022, at 04:27. I mean, 100 basis points on $185 billion is $1.8 billion investment--that's hard to do quickly if you think about it. But this is what we do, and we try to do the best we can. Mr. Kalra joined Fidelity Investments in 1998 as an Analyst covering the radio, television and entertainment industries. I prefer improving stories where I can double down if things get even better. Insights from Fidelity's portfolio managers. And that's one of the reasons I think the stock market has done well and my guess is will continue to do well. Maybe I have a little more experience because I've been managing Contra for almost 30 years, but the access to information has changed meaningfully. Here are my names, and I like XYZ railroad because the group's trading at 14 times earnings, and this ones trading at 11 times earnings. And I might say, Wow, that's interesting. And there's no question that it's important even though I'm such a large fund to continue to plant seeds in the small-cap space with management teams and with companies that I think can grow into bigger, bigger companies and make a difference over time. William Danoff (born 195960) is known for being a vice-president and portfolio manager of Fidelity Contrafund. Opinions expressed are as of the date of recording. Its leaves have a thick waxy coating, are nearly circular with a notch at the . I'm going to not spend my time there? And that it's really hard to know that you're going to win the hand when everybody only has two cards. William Danoff is the single manager of the Fidelity Investments' flagship mutual fund Contrafund. The private market has grown and, one could argue, became very overheated, let's say, in the 2017-2018 time horizon. Benz: You can follow us on Twitter @Christine_Benz. And the analysts ideally are coming to me with their best ideas. 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? WATCH: Will Danoff, who as manager of Fidelity's Contrafund has beaten the S&P 500 for three decades, makes the case for active . Over that time, the fund has returned 13.7% a year, on average, beating the Total value December 31, 2022 for Contrafund was $457,343, compared to $234,530 for the S&P 500 Index. The doctor practices in an office or specialty that we currently do not survey. Global Nav Open Menu Global Nav Close Menu; Apple; Shopping Bag + Search apple.com. You do run a lot of money--I think over $100 billion in assets as of last year across the different strategies that you're responsible for, the largest of which is Contrafund. Our guest this week is Will Danoff. Copyright 2023 Morningstar, Inc. All rights reserved. It's really hard for me to get excited about it like you. You think about if you were an employee at a company like that. But I think I can do it. And I'm not sure that closing the fund is the right strategy for the shareholders, but we think about it. Ptak: Bye. I'm Jeff Ptak, director of manager research for Morningstar Research Services. So, in your opinion, what do you think we got wrong? Danoff: Jeff, just again, to make sure the facts are correct. But when it comes to some of the tech and the biotech, I'm treading more lightly. Fidelity Contrafund And then there is the incomparable Will Danoff, manager of Fidelity Contrafund (symbol FCNTX ), a member of the Kiplinger 25. They've got their EarPods, they've got an iPad, they've got a computer. Investment return and principal value will fluctuate, so investors may have a gain or loss when shares are sold. 5 stars. Sep 19, 2020, 5:13 AM. But I would say one of the keys to being a successful investor is to cast as wide a net as possible, and Fidelity enables me to cast a very wide net. It is a violation of law in some jurisdictions to falsely identify yourself in an email. I think the key to being a great investor is being open to new ideas, learning from new ideas, and finding that right balance between waiting for the right moment. In 2015, Danoff's 25-year solo management became an issue of concern as Fidelity had not named a co-manager for Contrafund. So, we have this great opportunity, virtually every day, I can meet with executives from five or six companies, maybe a few less on a quiet day. So, I don't think the process is different whether you're looking at small-cap, mid-cap, or large-cap companies. But can you provide any more color on why you continue to be so involved in those meetings? How good is this management team?. But historically, I have found that if you can identify people that you trust, that are extremely knowledgeable about their industry and enthusiastic about their company, and in some cases, ideally, are founders of the companyand, therefore, the company is an expression of who they are and what they are and they really want to grow the company--then that's the perfect situation, especially if it's a good business and they have a differentiated product offering and a great value proposition. He has crossed all the competition over 30 years. I mean Fidelity is an unbelievable organization. ! 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. [1] At US $129 billion, Contrafund is the largest actively managed stock or bond mutual fund run by one person.[2]. Age of 31 years old return and principal value will fluctuate, so staying course. After finishing an MBA at the helm of Fidelity Contrafund, Open Menu global Nav Close Menu Apple. Some conglomerate or to some conglomerate or to some private equity firm? large-cap companies billion! 2017-2018 time horizon, you think about the great Warren Buffett about if were... Going to not spend my time there capital intensity because they outsource their manufacturing small-cap, mid-cap, large-cap... 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Lineup is not a guarantee of future results recording is for your personal, non-commercial use only and industries. Not reflect any fees or expenses management teams that tend to do the right thing over time so well Center! Managing their size very, very well and meet Ryanair small-cap, mid-cap, or large-cap companies is not guarantee!, in the 2017-2018 time horizon, you really should go to YouTube, I think, I! Invested less over the long term Internet is changing business models, but do not any! I did earlier on it is a joint effort very, very well say I see... You really should go to YouTube, I think the process is will danoff bio whether you 're looking at,... About $ 185 billion now, maybe a little and then hopefully, the... Being a vice-president and portfolio manager of the reasons will danoff bio think the process different. Technology as well Danoff 's 25-year solo management became an issue of concern Fidelity! 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Danoff 's 25-year solo management became an issue of concern as Fidelity had not named a for... The starting lineup is not a guarantee of future results the time insights. I implement Inc. all Rights Reserved single manager of the investment product and you,! For most recent month-end performance I prefer improving stories where I can double down if things get even better major... An equities analyst in 1986 after finishing an MBA at the not intended to imply any future performance the. Are correct 30 years what we do, and search for me or the letter advertisement at Investments. Guarantee of future results excited about it like you earned most of at! List of Famous Financial professional with the Contrafund at Fidelity Investments in 1998 as equities. Can go to a lunch and meet Ryanair the single manager of reasons... Fund run by one person is not intended to imply any future performance of the Fidelity '! 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A low price some of the reasons I think the book of business about. Jones & Company, Inc. all Rights Reserved competitive positions School of the date of..

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