If you've been stuck searching for Large Cap Growth funds, you might want to consider passing on by Fidelity Focused Stock Fund (FTQGX Quick QuoteFTQGX - Free Report) as a possibility. FTQGX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

We classify FTQGX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.

History of Fund/Manager

Fidelity is based in Boston, MA, and is the manager of FTQGX. Fidelity Focused Stock Fund debuted in November of 1996. Since then, FTQGX has accumulated assets of about $4.12 billion, according to the most recently available information. The fund's current manager, Stephen DuFour, has been in charge of the fund since March of 2007.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 13.43%, and is 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 26.26%, which places it in the middle third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

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. The standard deviation of FTQGX over the past three years is 16.98% compared to the category average of 16.76%. Over the past 5 years, the standard deviation of the fund is 18.37% compared to the category average of 19.16%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.12, so it is likely going to be more volatile than the market at large. 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. With a negative alpha of -1.73, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Investigating 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 mostly on equities that are traded in the United States.

Currently, this mutual fund is holding 83.35% in stocks, which have an average market capitalization of $703.39 billion. The fund has the heaviest exposure to the following market sectors:

• Technology
• Finance
• Retail Trade

This fund's turnover is about 153%, so the fund managers are making more trades in a given year than the average of comparable funds.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FTQGX is a no load fund and it has an expense ratio of 0.69%.

While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.

Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.

Bottom Line

As a mutual fund with a 'sell' rank, FTQGX is in the bottom 40% of all funds we cover and it may be one to avoid putting on your short list of possible picks in Large Cap Growth. This fund from Fidelity needs to turn around some of its key fundamental metrics such as the Zacks Ranks of its holdings, alpha, and performance in order for investors to consider Fidelity Focused Stock Fund in the future.

For additional information on the Large Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FTQGX too for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.