May 31, 2016 / 3:21 PM / 3 years ago

Fidelity Contrafund cuts Chipotle stake by 21 percent

A Chipotle Mexican Grill is seen the day before it announces its first quarter results, in Los Angeles, California, United States, April 25, 2016. REUTERS/Lucy Nicholson

BOSTON (Reuters) - The Fidelity Contrafund cut its stake in Chipotle Mexican Grill Inc by 21 percent in April as the burrito chain continued to deal with fallout from last year’s E.coli outbreak.

Contrafund, the largest mutual fund investor in Chipotle, reported owning 1.37 million shares at the end of April, compared with 1.74 million a month earlier, according to the fund’s latest holdings disclosure, posted on May 29.

Chipotle shares have fallen 39 percent since the end of September. The stock was last down 0.84 percent at $441.69 in late Tuesday morning trade on the New York Stock Exchange.

The $107 billion Contrafund, which is run by portfolio manager Will Danoff, also has become a major stake holder in tech start-up companies before they are publicly traded. Those holdings include richly valued pre-IPO companies Uber Technologies Inc and Pinterest Inc.

The value of Contrafund’s stake in Pinterest Series E shares rose 14 percent to $472.73 million in April, according to the fund’s latest holdings disclosure. That stake is bigger than Contrafund’s $456 million investment in General Electric Co and $437 million position in Coca-Cola Co.

Also last month, Fidelity marked up its stake in cloud communications software company Twilio by 10 percent. Twilio filed for an IPO last week.

Fidelity also gave genetics testing company 23andMe a 10 percent boost in valuation. Storage company Nutanix, which filed for an IPO in December but delayed its public debut due to rocky market conditions, got a 9 percent boost.

Fidelity marked down its stake in The Honest Co, a consumer goods company founded by actress Jessica Alba, by about 13 percent.

Reporting By Tim McLaughlin and Heather Somerville; Editing by W Simon and Meredith Mazzilli

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