Fidelity Contrafund avoids Big Oil, adds to Tesla stake in Q1
BOSTON, April 16
BOSTON, April 16 (Reuters) - Fidelity Investments' $109 billion Contrafund continues to avoid big oil companies, but added to its position in electric car maker Tesla Motors Inc in the first quarter as portfolio manager Will Danoff trimmed his position in biotech stocks ahead of the recent sell-off in that sector.
Contrafund returned 0.47 percent in the first quarter, lagging the 1.81 percent advance of the S&P 500 Index. Amazon.com Inc was the fund's biggest detractor, but Danoff maintained his overweight position in the stock, according to his first-quarter commentary released on Wednesday.
Tesla, meanwhile, helped the fund as did Danoff's avoidance of Exxon Mobil and Chevron.
"Our long-term fundamental view for Tesla remained positive, and we added modestly to the fund's position in the stock," according to the Contrafund commentary.
Danoff said he doesn't believe Exxon and Chevron have strong growth prospects.
"The energy sector was the fund's largest underweighting at period end, as we believed strong U.S. shale gas and oil production could suppress prices and profits," according to the Contrafund commentary. (Reporting by Tim McLaughlin; Editing by Eric Walsh)