Again, I tend to want to invest with managements who I think are going to do the right thing over time, but there's a lot of trust there. Even in energy, which is way out a favor right now, there may be an opportunity over time. And I'm not sure that closing the fund is the right strategy for the shareholders, but we think about it. He served as the portfolio manager assistant for Fidelity. Investments in foreign securities involve greater risk than U.S. investments. Technology has become a bigger and bigger part of everybody's life. His name is Will Danoff. Total value December 31, 2022 for Contrafund was $457,343, compared to $234,530 for the S&P 500 Index. Will Danoff, portfolio manager of Fidelity's Contrafund (FCNTX), is arguably a more impressive investor than Peter Lynch. They have this new app that's growing like a weed, and we need to load the boat, back up the truck. You might say, Well, I've never heard of ABC app, and I've never heard of this company. Excited to be here. And I think we've done very well because we're both large consumers of the Fidelity research department's ideas and efforts, but we also work closely to influence the research effort and what stocks the analysts are emphasizing. William Danoff is currently vice president at Fidelity Investments. [1] At US $129 billion, Contrafund is the largest actively managed stock or bond mutual fund run by one person. Will Danoff is one of the best stock investors in the world. Family: Nymphaeaceae. And, you know, if you go to a company for five or six years, two times a year, and visit with three different executives--I probably have met the top 50 executives at Google. But the real key is not just to hear the story but to follow up. By using this service, you agree to input your real email address and only send it to people you know. Seems like, maybe that's a conscious choice you've made in how it is you're going to spend your time and focus as a portfolio manager. Will Danoff Joined Fidelity 1986 Industry experience 37 years Career experience Portfolio assistant, Fidelity Investments Equity research analyst, Fidelity Investments Education BA, Harvard University MBA, Wharton School of the University of Pennsylvania 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. What are you doing to grow your company's earnings per share? And again, private companies are an opportunity to learn and, if they're the right private company, an opportunity to invest. If you have a comment or a guest idea, please email us at TheLongView@Morningstar.com. And I've added value relative to the index. 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. And, as you know, there were constraints on when you can book and only one class and no free food and all that stuff. I think one of the huge competitive advantages Fidelity has is our access to managements and access at important inflection points. So, margins for the S&P 500--both operating margins and free cash flow margins--have improved nicely in the last 15 years. Copyright 1998-2023 FMR LLC. And I think that probably partly explains why I haven't been as active on social media. This copy is for your personal, non-commercial use only. Permanent link 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. So we can learn, but the monitoring of these companies takes a lot of time, but it can be very, very instructive as to the quality of the company that you're invested in or considering investing. Born on May 7, 1946 in United States of America, Bill Danoff started his career as Singer . So, I'd say my emotional coefficient has improved. At US$129 billion, Contrafund is the largest actively managed stock or bond mutual fund run by one person. Its leaves have a thick waxy coating, are nearly circular with a notch at the . Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation. This includes companies that have shown a strong competitive position, high returns on capital, and solid free cash flow generation, as well as management teams that have been stewards of shareholder capital. And if it is, I tend to go to a meeting or two--probably go to more meetings--because I say maybe I'll learn something by going to a meeting. Will Danoff32 years Our guest this week is Will Danoff. Contrafund is so large (about. Such opinions are subject to change. And, you know, I would say this business is sort of like a poker game. And ideally you're asking good questions to learn as much as possible about an industry, about that particular company, and about that particular executive. Would I be better off choosing an actively managed fund that had a very well established manager with a long track record, like a will danoff at fidelity vs buying etf or index through my 401k? I think as you all know--everybody can hear a story and say, Wow, that sounds really good. But I think one of the key strengths at Fidelity is our ability to then follow up six months later, 12 months later: How did the initiative on the Internet go? We recommend you to check the complete list of Famous People born on . You can do it, but that's going to take some time. So Hey, that sounds really good. One--you have to make sure that you understand the threats to your existing holdings, but also, there's usually a pivot point where a concept then turns into a profitable business. Bill Danoff Family Background & Career. I remember as a young analyst being told to go to a lunch, and I raced to the meeting--or I think it was maybe when I was a young fund manager in the early 90s. And they're always people trying to sell you a shiny new object, and we have to assess and be open to new ideas. But Fidelity gives us this great platform because we're one of the largest institutional investors. Sep.18 -- Will Danoff, Fidelity Contrafund Manager spoke Exclusively with Bloomberg's Erik Schatzker about investing in post-pandemic and how he's managed to. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. Will Danoff32 years 9/17/1990-12/31/2022 On average, the Fidelity Contrafund has beaten the S&P 500 Index by 2.31% per year. Information that you input is not stored or reviewed for any purpose other than to provide search results. Family (1) Spouse And our real challenge or our job is to ask for a picture. But there's always controversy. Low interest rates have created certain distortions in valuation. Sign In. 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. But there's no denying this fund is enormous, which means buying small, fast-growing companies won't do it much good. The older mind is not as nimble as the younger mind. That's a really good point. And in talking to company management--what do you think you get from that experience? Thanks so much. And I went to a lunch in the mid to early 90s. Turnover is maybe 35%. So, I'm trying to bet big with the bigger companies. Danoff manages Fidelity's Contrafund and has for over thirty years. How did the growth initiative in China go? Danoff: Jeff, just again, to make sure the facts are correct. So, the bar has risen for the Contrafund. indexs 10.4%. During his nearly three-decade tenure at Contrafund, Will has trounced the market indexes and, even more remarkably, managed to maintain the fund's performance at scale. There are obviously trade-offs. You haven't appeared in commercials or written books or taken to Twitter, and you could do any of those things and gain a big following and greater notoriety. And then they want to talk to the largest shareholders, the potential largest shareholders. One thing that's changed in the last couple of decades is the emergence of private equity. And we talked about the long view. And again, it goes back to who you are, and maybe certain money managers have to justify their higher fees by being out there pressing management, but you know, it's a very good point, Christine. 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. Sometimes William goes by various nicknames including William A Danoff and Will Danoff. How did the new acquisition in Europe go? He and Nivert, who would later become his wife, joined forces in a duo that was called Fat City. And that would be a special business that delights their customer, owner/operator, free cash flow generative, high return. Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions. Contrafund is one of Fidelity's largest mutual funds holding over $129 billion in assets, making it the largest single-manager mutual fund in the world. Investment return and principal value will fluctuate, so investors may have a gain or loss when shares are sold. 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. On average, the Fidelity Contrafund has beaten the S&P 500 Index by 2.31% per year. Or do you play to your strengths and just put all your energies into what you're good at? Fidelity Contrafund's longtime star manager on why he runs money, how his definition of "edge" has evolved, the best way to engage with analysts and company management, and more. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. The long view has to be that equities are going to perform better than bonds for the foreseeable future. Maybe that's a good place for us to start. Do you wait for, God forbid, revenue and profit? 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. This would be through my 401k, so all tax deferred. This chart is not intended to imply any future performance of the investment product. Important legal information about the email you will be sending. And that can be subtle, and experience helps there. Ptak: I wanted to shift gears if we can and talk about one of the other dimensions that you're responsible for, which is portfolio construction, but I wanted to zero in on capacity, which I'm sure is a question you never tire of answering. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. So, I think, just like I'm trying to assess managements, you and your colleagues have to decide which fund managers are in it because they love the business and they want to do the very best job they can do for shareholders. But there's a tremendous opportunity to learn and to monitor what's happening. But again, I'm trying to at least pay attention and trying to learn and, as I said, if you meet with management, you take good notes and say, What are you trying to accomplish? And then you go back after a year and say, What have you accomplished? I feel really lucky to be here. There could be big economic opportunity if these biotech companies can solve some of these disease opportunities. I'm going to not spend my time there? We recommend you to check the complete list of Famous Singer. So, I think, for me, one of the advantages over time is to be able to think long term and to try to think about what's on the minds of the executives on the other side of the table. During his nearly three-decade tenure at Contrafund, Will has trounced the market indexes and, even more remarkably, managed to maintain the fund's performance at scale. And this is always the great debate. He's a graduate of Harvard University and earned his MBA at the Wharton School of the University of Pennsylvania. For the best Barrons.com experience, please update to a modern browser. 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. Do we decide to buy another company or one of their customers or one of their suppliers? And if you do that every day, for 29 or 30 years over time you gain some expertise and hopefully you improve your batting average and add value to the shareholders. So that'swhatever--coming up on 16 years, and I don't know, maybe 10 years ago, we decided that we needed to visit Mountain View more regularly and asked for visits with somebody other than just the CFO. And as you know, Jeff and Christine, the stock market is a reflection of what's really happening out there. 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. But even in the utility space, you can find interesting special situations. Ptak: And so does that tend to be a function of kind of how you would assess opportunity costs associated with entering into a new idea? William Danoff: Thanks, Jeff. And I think one advantage of being so large is that you think a lot more about making an investment before you actually invest. Sep 19, 2020, 5:13 AM. 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. But in every industry, there are new emerging themes, and hopefully, the Fidelity research department and I can identify those themes and find companies that are going to benefit from those themes. A letter from Dr. Danoff to readers: My name is Dr. Dudley Danoff. He's beat the S&P 500 300 basis points. It's the largest single manager fund with about $130 billion and the track record of the fund is just outstanding. At the end of his time at Berklee College of Music, he would emerge with a degree in film scoring. Class: Magnoliopsida. So, I went, and I was really excited about the story. But, you know, what we've all learned is we want to make sure that the management team is particularly special. (2008) and Bloodrunners (2017). Dudley S. Danoff, MD. 5847 Education: BA Hunter College, City University of New York, 1976. And often, it's really just, Is this company going to be bigger and better and stronger five years from now than it is today? Consistently outperforming the market is very hard. 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. E. rosea has become invasive and has exerted a major ecological impact on the native Hawaiian snail fauna. And again, experience plays a role here. You can't always assume that managements going to do the right thing. Surgical Oncology, Urology 310-854-9898 Fax: 310-854-0267. Thank you again, so much, for joining us on The Long View. https://www.barrons.com/articles/fidelitys-will-danoff-looks-back-on-30-years-at-contrafund-51601679688. How has that changed in the last few decades in which you've been running money? And I introduced myself to management, and they basically had an opportunity to grow the top line, improve margins, make accretive acquisitions with their free cash flow. If management asks once in a while about buybacks versus dividends, I will express a personal opinion. Under his direction, the fund has averaged a whopping 14.13% return (about 2% greater than the benchmark S&P 500 index). Again, we're all a product of where we started in the business. There are large-cap companies that are in a growth mindset that, even though they're large, can continue to generate a lot of shareholder value. So, I remember the early days of companies like Costco, and management has experimented with new ideas, but generally speaking, they're close to their customers, they had a great value proposition. Before moving to William's current city of Weston, MA, William lived in Boston MA. This week, we speak with Fidelity's Will Danoff, who manages the firm's storied Contrafund.The large-cap growth fund has $139 billion in assets under management. Or do you just keep that to yourself? But again, its personality in what you do, and Peter Lynch talks about the notion of a poker game. You know, if you think about it, Jeff, the larger companies in the S&P now are $1 trillion market caps. Prior to becoming a portfolio manager, Will served as a retail analyst at Fidelity and for a time as assistant portfolio manager at Fidelity Magellan. S&P 500 During his nearly 30-year tenure, the Fidelity Contrafund has outperformed the S&P 500 in 100% of rolling 10-year time periods. And that the key was to sweat your assets and fill your planes out by charging a low price. So, I find that to really engage one as an investor, you need to engage with managements and then also to engage with analysts and other fund managers you have to be an analyst. We'll widen the aperture, so to speak, and talk about sort of the general theme of focus. You're well known in investing circles. 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. William Danoff was born on 1960. And so that's sort of what I do well, I think, is to try to ask for a call with the management team. TOP 2.5%. 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? What are we thinking about management? Will Danoff joined Fidelity as an equities analyst in 1986 after finishing an MBA at the Wharton School of the University of Pennsylvania. The doctor practices in an office or specialty that we currently do not survey. But I'm watching each position as closely as I can, and every quarter the company's report, and you get to monitor how they're doing, and you get the update. Indeed, Contrafund was recently home to more than $120 billion in assets and has ranked among the world's largest funds for many years. And we can also monitor all of these companies overseas. They've got their EarPods, they've got an iPad, they've got a computer. Danoff: That's a really good question, Jeff. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. It sounds like that's personality-driven--that you like to dive into those details yourself. I think it would be hard if I hadn't grown up with the fund. Maybe it's growing faster than people think. Do you wait for FDA approval? But how often, if ever, do you get involved with giving management your opinion about what you think they ought to do? Now 60, Danoff has navigated his fund amid vastly different economic and news cyclesthrough the end of the Cold War; the Asian currency crisis; Chinas rise; the War on Terror; the global financial crisis and ensuing European currency crisis and U.S. credit downgrade; and now, the coronavirus pandemic. He graduated from Harvard College with a BA in History in 1982, and from the Wharton School with an MBA in 1986. And so, one has to be very careful. Danoff: Yeah, that's a really good question, Christine. 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. And they were a relatively small player with a differentiated product and mostly selling balances to labs. He is affiliated with Cedars - Sinai Medical Center. I mean, I was the retail analyst at Fidelity in the mid 80s. And now people have two devices. 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. Also learn how He earned most of networth at the age of 60 years old? We're seeing the new management teams when they come to Boston to tell us how excited they are to take over the company, and finding new ideas then raises the bar for your existing positions. Let's then call the company together. You all know -- everybody can hear a story and say, Wow, that sounds really question! 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