Comments on: Fidelity to Reopen Magellan Fund to New Investors http://www.thesunsfinancialdiary.com/investing/fidelity-to-reopen-magellan-fund-to-new-investors/ Fri, 20 Nov 2009 19:09:54 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Recently Reopened Mutual Funds: Any Interesting Ones? | The Suns Financial Diary | A Personal Finance Blog on Saving and Investing http://www.thesunsfinancialdiary.com/investing/fidelity-to-reopen-magellan-fund-to-new-investors/comment-page-1/#comment-37262 Recently Reopened Mutual Funds: Any Interesting Ones? | The Suns Financial Diary | A Personal Finance Blog on Saving and Investing Tue, 29 Jan 2008 02:13:45 +0000 http://www.thesunsfinancialdiary.com/investing/mutual-fund/fidelity-to-reopen-magellan-fund-to-new-investors/#comment-37262 [...] closed mutual funds reopened their doors to new investors, including such well-known names as Fidelity Magellan (FMAGX) and Oakmark International (OAKIX), after a rough second half of 2007. For investors who had [...] [...] closed mutual funds reopened their doors to new investors, including such well-known names as Fidelity Magellan (FMAGX) and Oakmark International (OAKIX), after a rough second half of 2007. For investors who had [...]

]]> By: Swamproot http://www.thesunsfinancialdiary.com/investing/fidelity-to-reopen-magellan-fund-to-new-investors/comment-page-1/#comment-35221 Swamproot Thu, 17 Jan 2008 22:42:17 +0000 http://www.thesunsfinancialdiary.com/investing/mutual-fund/fidelity-to-reopen-magellan-fund-to-new-investors/#comment-35221 "their total portfolio shouldn’t have lost anything because of it" Of course, that is in a retirement account only. Taxable investors would have lost some to the taxman. “their total portfolio shouldn’t have lost anything because of it”

Of course, that is in a retirement account only. Taxable investors would have lost some to the taxman.

]]> By: Swamproot http://www.thesunsfinancialdiary.com/investing/fidelity-to-reopen-magellan-fund-to-new-investors/comment-page-1/#comment-35219 Swamproot Thu, 17 Jan 2008 22:37:31 +0000 http://www.thesunsfinancialdiary.com/investing/mutual-fund/fidelity-to-reopen-magellan-fund-to-new-investors/#comment-35219 MBE, I wondered the same thing myself. But it turns out they did a big portfolio shuffling and had some unusually large capitol gains distributions at that time. The price reflects the amount that was paid out, and folks with their gains redistributed received extra shares to make up the difference so their total portfolio shouldn't have lost anything because of it. Something I recently learned about when I saw my yahoo finance portfolio drop like a rock when I had a lot of distributions in December. They dropped all right, but not as steeply as I had at first thought when it was happening. Oh, the things I learn when I actually pay attention. :-) MBE, I wondered the same thing myself. But it turns out they did a big portfolio shuffling and had some unusually large capitol gains distributions at that time. The price reflects the amount that was paid out, and folks with their gains redistributed received extra shares to make up the difference so their total portfolio shouldn’t have lost anything because of it.

Something I recently learned about when I saw my yahoo finance portfolio drop like a rock when I had a lot of distributions in December. They dropped all right, but not as steeply as I had at first thought when it was happening. Oh, the things I learn when I actually pay attention. :-)

]]> By: Mickey Blue Eyes http://www.thesunsfinancialdiary.com/investing/fidelity-to-reopen-magellan-fund-to-new-investors/comment-page-1/#comment-35193 Mickey Blue Eyes Thu, 17 Jan 2008 15:10:42 +0000 http://www.thesunsfinancialdiary.com/investing/mutual-fund/fidelity-to-reopen-magellan-fund-to-new-investors/#comment-35193 My first question is, what happened in mid-2006 that resulted in a 20% immediate drop in the NAV? Other than that precipitous drop, the pattern seems to correlate with the S&P 500. It would certainly suck to have purchased shares only to watch the value drop 30% in a couple months. And it would certainly suck to have been invested for 10 years and break even. Unfortunately, the chart probably does not take into account reinvested distributions, so it may not have been as bad as "break even". My first question is, what happened in mid-2006 that resulted in a 20% immediate drop in the NAV? Other than that precipitous drop, the pattern seems to correlate with the S&P 500.

It would certainly suck to have purchased shares only to watch the value drop 30% in a couple months. And it would certainly suck to have been invested for 10 years and break even. Unfortunately, the chart probably does not take into account reinvested distributions, so it may not have been as bad as “break even”.

]]> By: Sun http://www.thesunsfinancialdiary.com/investing/fidelity-to-reopen-magellan-fund-to-new-investors/comment-page-1/#comment-35136 Sun Thu, 17 Jan 2008 03:01:05 +0000 http://www.thesunsfinancialdiary.com/investing/mutual-fund/fidelity-to-reopen-magellan-fund-to-new-investors/#comment-35136 Rev: According to Fidelity, 85% of the fund's assets were in retirement accounts. Since this fund has been around for a long time, the decline in assets of the fund could be the result that many have already started to withdraw their investments from the fund. Plus, since the fund has been closed to new investors for more than 10 years, the withdrawal rate must be much greater than the rate of new investments from existing investors. Rev: According to Fidelity, 85% of the fund’s assets were in retirement accounts. Since this fund has been around for a long time, the decline in assets of the fund could be the result that many have already started to withdraw their investments from the fund. Plus, since the fund has been closed to new investors for more than 10 years, the withdrawal rate must be much greater than the rate of new investments from existing investors.

]]> By: Mad Money http://www.thesunsfinancialdiary.com/investing/fidelity-to-reopen-magellan-fund-to-new-investors/comment-page-1/#comment-34995 Mad Money Wed, 16 Jan 2008 04:21:10 +0000 http://www.thesunsfinancialdiary.com/investing/mutual-fund/fidelity-to-reopen-magellan-fund-to-new-investors/#comment-34995 i think you also have to look that the fund is at a low and I would hope it only has room to go up... i think you also have to look that the fund is at a low and I would hope it only has room to go up…

]]> By: Mad Money http://www.thesunsfinancialdiary.com/investing/fidelity-to-reopen-magellan-fund-to-new-investors/comment-page-1/#comment-34994 Mad Money Wed, 16 Jan 2008 04:20:11 +0000 http://www.thesunsfinancialdiary.com/investing/mutual-fund/fidelity-to-reopen-magellan-fund-to-new-investors/#comment-34994 I think you have to look at it as they want to give people more options and by opening the fund back up they are doing so. they key is with any stock and even at times with funds you have to know when to get in and when to get out. I think you have to look at it as they want to give people more options and by opening the fund back up they are doing so. they key is with any stock and even at times with funds you have to know when to get in and when to get out.

]]> By: Rev. http://www.thesunsfinancialdiary.com/investing/fidelity-to-reopen-magellan-fund-to-new-investors/comment-page-1/#comment-34855 Rev. Tue, 15 Jan 2008 14:31:00 +0000 http://www.thesunsfinancialdiary.com/investing/mutual-fund/fidelity-to-reopen-magellan-fund-to-new-investors/#comment-34855 Maybe it is just me but a fund that has lost more than half of its assets in 10 years doesn't really seem that great. Maybe they should get a new manager. From how I understand it they are reopening and basically saying "Hey we lost a ton of money why not invest yours now?" am I missing something? Maybe it is just me but a fund that has lost more than half of its assets in 10 years doesn’t really seem that great. Maybe they should get a new manager. From how I understand it they are reopening and basically saying “Hey we lost a ton of money why not invest yours now?”

am I missing something?

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