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[0:51] ..." What happened at Magellan why did it lose its certain Robert Hewitt. "...
[1:21] ..." today accomplished large cap investor although he invests. Very well into the mid cap and small cap area of the market but first and foremost is great stock picker. And he's built much of his reputation and do a great job investing outside the United States as well. In technology stocks the common denominator Euro is being -- stocks."...
[2:24] ..." Now it does seem that fidelity and other mutual fund companies. Have focused on increased services to increase during."...
[0:00]" When it to note is that fidelity is is coming back they spent tens of millions of dollars to fortify their research department in 2007 not just Magellan but many other funds that they manage posted very strong results and the most obvious of them. It is -- Magellan itself under under new management from Harry --"
[0:26]" Now as I recall the Magellan fund was closed because they just couldn't handle the influx of --"
[0:32]" Magellan has been closed since September of 97. And closed with about 61 billion dollars that today either 45 billion dollars -- assets. So having said that yes smaller but it still very large fund. The challenges of managing 45 billion dollars haven't gone away."
[0:51]" What happened at Magellan why did it lose its certain Robert Hewitt. "
[0:55]" Well frankly the the problem and Magellan was. In part size is too young to be over hundred billion dollars in assets so by certain managers are considerably smaller today than it once was. And quite frankly just simply didn't have the management talent. That the fund now has an Harry Lange."
[1:16]" Tell me about what he brings to the --"
[1:18]" With Harry Lange brings to the table is he is today accomplished large cap investor although he invests. Very well into the mid cap and small cap area of the market but first and foremost is great stock picker. And he's built much of his reputation and do a great job investing outside the United States as well. In technology stocks the common denominator Euro is being -- stocks."
[1:44]" Now on another issue and that is that as you mentioned last week fidelity was hit with the a downgrade on their on their credit rating."
[1:52]" That's correct these to took them down a notch and one of the things that they cited was the fact ironically that fidelity is spending. A lot of money fortifying the research group. And that to me frankly doesn't make whole heck of a lot of sense because fidelity spread and -- butter at the end of the day. Is about to diligent and so that there are investing for their futures seems to me to be a smart long term. But Moody's not a good move in terms -- the immediate impact on Fidelity's Balanchine."
[2:24]" Now it does seem that fidelity and other mutual fund companies. Have focused on increased services to increase during."
[2:33]" That that's true infidelity has become boarded dependent revenue lines on more -- tile area the business model which is the brokerage side. But and where'd -- the lion's share of Fidelity's profits -- historically come from on the mutual fund side. And fidelity clearly has been losing market share to a number of competitors including bank guard. And I believe they slow lighten things that we need to do business in a far different factions have. And that this is the companies in need to invest in in. New machines they need to invest in in people. And so they stepped up to the plate and doubled their research size and I just think it's absolutely right thing to do it into and it's hard to bear fruit"
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