Stock Investment Analysis

In: Business and Management

Submitted By hjgoods
Words 1839
Pages 8
Fidelity Large Cap Stock Fund and S&P 500 are similar funds. These two funds heavily invest in large market capitalization company common stock, topping 80% of its entire portfolio.
Fidelity Large Cap Stock Fund consists of normally 11 different sectors for equities listed in highest portfolio weight with first five sectors making 80% of the portfolio:
• Financials
• Information Technology
• Health Care
• Energy
• Industrials
• Consumer Discretionary
• Consumer Staples
• Telecommunication Services
• Materials
• Utilities
• Other
Current year-to-date performance of the Fidelity Large Cap Stock Fund (FLCSX) was overall positive at 16.24% year-to-date return.
The financial sector contributed and played a big part in making the successful performance this year resulting from a good portfolio mixture of securities and its positive gain. This mixture consists of some of the high return securities such as; JPMorgan Chase, MetLife and Charles Schwab returning, 29.38%, 48.68% and 54.99% respectively.
The historic performance has shown that both MetLife and Charles Schwab performed well responding to the rising interest rates, and these two companies did not fail to positively react to the recent increase in interest rates. Both companies’ share price went up by more than 20%. Thanks to the uptick in interest rates due to many speculation of slow economy recovery in the market.
S&P 500 also had a strong year-to-date return at 13.82%. Both FLCSX and S&P 500 topped more than 10 points back in Q1 of 2013, followed up by not as strong return shown in Q2 with FLCSX at 4.93% and S&P 500 at 2.91%. Despite the not as favorable Q2 results, both funds showed strong year-to-date return with FLCSX topping S&P 500 only by a few points.

There are four types of volatility measures used in analyzing the returns of the portfolio; Beta is used to quantify the…...

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