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Is Fidelity OTC Portfolio K (FOCKX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Mid Cap Blend fund? Fidelity OTC Portfolio K (FOCKX - Free Report) is a potential starting point. FOCKX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Mid Cap Blend mutual funds is an area filled with options, such as FOCKX. Mid Cap Blend funds expose investors to value picks, income opportunities, and exciting growth potential, but also gives some stability; these funds usually seek a stock portfolio of various size and style, which allows for diversification when the focus is on companies with market capitalization in the range of $2 billion to $10 billion.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FOCKX. Since Fidelity OTC Portfolio K made its debut in May of 2008, FOCKX has garnered more than $6.75 billion in assets. The fund is currently managed by Sonu Kalra who has been in charge of the fund since September of 2017.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 16.46%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 19.38%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FOCKX's standard deviation over the past three years is 15.37% compared to the category average of 11.39%. The fund's standard deviation over the past 5 years is 16.28% compared to the category average of 11.36%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FOCKX has a 5-year beta of 1.2, which means it is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a positive alpha of 3.08. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
Currently, this mutual fund is holding 95.05% stock in stocks, with an average market capitalization of $372.47 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Turnover is 37%, which means, on average, the fund makes fewer trades than the average comparable fund.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FOCKX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 1.05%. Looking at the fund from a cost perspective, FOCKX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity OTC Portfolio K ( FOCKX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity OTC Portfolio K ( FOCKX ) looks like a good potential choice for investors right now.
This could just be the start of your research on FOCKXin the Mid Cap Blend category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is Fidelity OTC Portfolio K (FOCKX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Mid Cap Blend fund? Fidelity OTC Portfolio K (FOCKX - Free Report) is a potential starting point. FOCKX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Mid Cap Blend mutual funds is an area filled with options, such as FOCKX. Mid Cap Blend funds expose investors to value picks, income opportunities, and exciting growth potential, but also gives some stability; these funds usually seek a stock portfolio of various size and style, which allows for diversification when the focus is on companies with market capitalization in the range of $2 billion to $10 billion.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FOCKX. Since Fidelity OTC Portfolio K made its debut in May of 2008, FOCKX has garnered more than $6.75 billion in assets. The fund is currently managed by Sonu Kalra who has been in charge of the fund since September of 2017.
Performance
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 16.46%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 19.38%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FOCKX's standard deviation over the past three years is 15.37% compared to the category average of 11.39%. The fund's standard deviation over the past 5 years is 16.28% compared to the category average of 11.36%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FOCKX has a 5-year beta of 1.2, which means it is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a positive alpha of 3.08. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
Currently, this mutual fund is holding 95.05% stock in stocks, with an average market capitalization of $372.47 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
Turnover is 37%, which means, on average, the fund makes fewer trades than the average comparable fund.Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FOCKX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 1.05%. Looking at the fund from a cost perspective, FOCKX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Bottom Line
Overall, Fidelity OTC Portfolio K ( FOCKX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity OTC Portfolio K ( FOCKX ) looks like a good potential choice for investors right now.
This could just be the start of your research on FOCKXin the Mid Cap Blend category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.