Magellan Fund Surges Past Vanguard 500 Index Fund in 1st Quarter

Strategic Insights -

The Fidelity Magellan Fund, managed by Bob Stansky, has outperformed the Vanguard 500 Index Fund in the first quarter of 1999, returning 7.4% to investors compared to the Vanguard 500 Index Fund's 5.0%. This significant gain has earned Stansky a spot among mutual fund manager heroes, following in the footsteps of legendary managers like Ned Johnson and Peter Lynch. The Vanguard 500 Index Fund, which mimics the performance of the Standard & Poor 500 Index, is America's top-selling fund, with $3.18 billion in assets added in the first two months of 1999.

Key Takeaways:

  • Fidelity Magellan Fund (FMAGX) returned 7.4% to investors in the first quarter of 1999, outperforming the Vanguard 500 Index Fund (VFINX) by 2.4%.
  • Vanguard 500 Index Fund added $3.18 billion in assets in the first two months of 1999, making it America's top-selling fund.
  • Bob Stansky, manager of the Fidelity Magellan Fund, has been praised as a mutual fund manager hero alongside legendary managers Ned Johnson and Peter Lynch.
  • Fidelity Magellan Fund remains the world's biggest fund with assets exceeding $90 billion.
  • Vanguard 500 Index Fund has about $80 billion in assets.
  • Strong technology holdings in Microsoft (MSFT), America Online (AOL), Intel (INTC), Cisco (CSCO), Yahoo (YHOO) contributed to Magellan's success.

Statistics:

  • 7.4%: Fidelity Magellan Fund's return to investors in the first quarter of 1999.
  • 5.0%: Vanguard 500 Index Fund's return to investors in the first quarter of 1999.
  • 48%: Increase in Magellan Fund's returns compared to the Vanguard 500 Index Fund.
  • $3.18 billion: Assets added by the Vanguard 500 Index Fund in the first two months of 1999.
  • $90 billion: Assets of the Fidelity Magellan Fund.
  • $80 billion: Assets of the Vanguard 500 Index Fund.

Sources:

  • Fidelity Independent Adviser, "Strong Technology Holdings in Microsoft, America Online, Intel, Cisco, Yahoo Help Magellan Surge Past Vanguard 500 Index Fund in 1st Quarter."
  • Fidelity Magellan Fund (FMAGX)
  • Vanguard 500 Index Fund (VFINX)
  • Microsoft Corp. (NASDAQ:MSFT)
  • America Online (NYSE:AOL)
  • Intel Corp. (NASDAQ:INTC)
  • Cisco Systems, Inc. (NASDAQ:CSCO)
  • Yahoo (NYSE:YHOO)(NASDAQ:YHOO)