I remember being on a panel with Nelson Peltz, and Nelson, who does a great job at Trian, likes to write white papers on the company's business and then start telling management what to do, and I said, the only letter I ever wrote to management was thanking them for a great job and an update that I found particularly helpful. Also learn how He earned most of networth at the age of 60 years old? I'm tasting the soup in the kitchen every day and tweaking it, but generally, I like the taste and I'm aware of the taste profile that I have. He is an actor, known for Kingsman: The Golden Circle (2017), Good Will Hunting (1997) and Alien: Covenant (2017). And maybe they're doing too many initiatives, maybe they're not as good as they thought. I think about trying to understand the facts, trying to use my accumulated industry and company knowledge to anticipate the future. Why? The managers are less experienced, but everyone has to hustle. And I don't want it to fall by the wayside. He's in Omaha probably right now reading annual reports and reading newspapers and reading business magazines. We've detected you are on Internet Explorer. The subject line of the email you send will be "Fidelity.com: ", Will is dedicated to the long-term benefits of active management. But there's always controversy. 30 years of managing Fidelity Contrafund. And we talked about the long view. And I introduced myself to the person to my left, who turned out to be the CEO of the company. And I went to a lunch in the mid to early 90s. So says Will Danoff, manager of Fidelity Investments' $108 billion Contrafund, the biggest actively managed stock or bond mutual fund run by one person. To make it into the starting lineup is not easy. Information that you input is not stored or reviewed for any purpose other than to provide search results. But we're working for the shareholders here at Fidelity, and I take that quite seriously. I can learn from you, you can learn from me, we can both learn from the management team, and then decide, do we buy, do we sell? Are you content to really to try to hit for average, come what may? Taffy Nivert. 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. he is one of famous Singer with the age 75 years old group. Ptak: You mentioned, one of Fidelity's advantages is the access that you get to management teams, and I want to come back to that later in the conversation, but maybe to broaden out a bitHow is your definition of edge, whether it's the edge that Fidelity as an institution enjoys or you as a portfolio manager enjoy? He's beat large-cap growth by 400 basis points. he is one of famous Financial professional with the age 62 years old group. Danoff: That's a really good question, Christine. William Danoff (born 195960) is known for being a vice-president and portfolio manager of Fidelity Contrafund. 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. 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. William Danoff, who has led a long and successful career in finance, is a vice president and fund manager with Fidelity Investments. 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. So, anyway, I would say again, for me, it's sort of like the chef tasting the soup, Jeff. Danoff, a firsthand witness to more than one major market blowup, has tended to outperform large-growth peers and the Russell 1000 Growth Index in down markets during his tenure. Our guest this week is Will Danoff. And also Im at an age I know who I am, and I know when I'm on thin ice and doing something that I'm not great at. 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 Jeff Ptak: Hi, and welcome to The Long View. You can't necessarily call your trader and say buy $1 billion worth of company XYZ. How did the initiative in India go? Through the crises, Danoff has focused on companies led by founders or engaged management that can double earnings over five years, on the theory that stock prices will follow. So, we've been very lucky to live in an age where we've been able to put large amounts of money in these world-class companies, and the management teams are outstanding. How did the growth initiative in China go? Do you have kind of a too hard pile--either types of companies or maybe industries that you just say, This has not historically worked out well for me. And this letter was written by the parents of a young child, 1 year old boy. There are obviously trade-offs. Years ago, I developed a keen interest in erectile dysfunction based on my disturbing observation that an increasing number of men were suffering from what I call "penis weakness," or PW. And you get 2% in the long bond, and the long bond isn't growing their "payout," and presumably, the U.S. equity companies are going to grow their dividends at a GDP-plus rate. And so far, we've done well. You think about your own life: If you're strong in one area, you don't necessarily want to change, and managements sometimes have difficulty changing because they've been so successful. Clearly, there is survivor bias in the S&P 500, so it is hard to add value over time. I think the book of business is about $185 billion now, maybe a little higher. You know, you think about the great Warren Buffett. 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. So, it's a little easier. Beating the market isn't easy. I mean, if you think about it, Jeff and Christine and listeners, maybe 10 years ago, you had one smartphone-type device. Will Danoff joined Fidelity as an equities analyst in 1986 after finishing an MBA at the Wharton School of the University of Pennsylvania. Listen and subscribe to Morningstars The Long View from your mobile device. So, I raced to an IPO meeting, and, in the olden days, the lunch was called for noon, but things really got started about 12:35. Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions. He is affiliated with Cedars - Sinai Medical Center. He has been married to Joan Grbach since 1988. The manager of a $132 billion mutual fund made two of his best investments because he met with the bosses of a now-defunct search engine, and received a surprise pitch from Elon Musk. Benchmark returns include reinvestment of capital gains and dividends, if any, but do not reflect any fees or expenses. Verify your identity, personalize the content you receive, or create and administer your account. In the biotech area--I took biology 40 years ago--so, I am way out of date. Our guest this week is Will Danoff. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. And, as you know, there were constraints on when you can book and only one class and no free food and all that stuff. the largest U.S. mutual fund run by a single manager. And do you expect that to ramp up further in the future? Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Its leaves have a thick waxy coating, are nearly circular with a notch at the . E. rosea has become invasive and has exerted a major ecological impact on the native Hawaiian snail fauna. So, let's call the company together so we can hear the same story, look at the same facts together, and then decide what the challenges might be facing the company going forward. 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. William Danoff (born 1959-60) is a vice-president and portfolio manager of Fidelity Contrafund, since 1990. And other investors may say, I'd want to crack the whip and push management faster or harder. That tends not to be what I do. And I only knew the name of the company. And there's no question that it's important even though I'm such a large fund to continue to plant seeds in the small-cap space with management teams and with companies that I think can grow into bigger, bigger companies and make a difference over time. Will Danoff and Joel Tillinghast are veteran portfolio managers with different investment styles. Start your review of Dudley S Danoff, MD. I'd say part of the wisdom of experience is to know where your circle of competence begins and ends. (Disclaimer: This recording is for informational purposes only and should not be considered investment advice. And then I went to Dreamforce, which is Salesforce.com's user conference out in San Francisco. 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. Benz: You can follow us on Twitter @Christine_Benz. Danoff: I think over time, maybe, you grow as an individual and you gain experience. And I said, I have to go to this presentation. And as investors, we all need to play to our strengths and be who we are. And hopefully small mid-cap companies can grow into bigger companies. You can help Wikipedia by expanding it. Over that time, the fund has returned 13.7% a year, on average, beating the So, in terms of portfolio construction, in the last 30 years, I've taken bigger bets. And the executive said, You know, we're not really competing with the airlines. Family (1) Spouse Bloomberg Opinion columnist Barry Ritholtz speaks with Will Danoff, who is the Contrafund portfolio manager at Fidelity. A native of Long Island, Dr. Danoff graduated from the University of Pennsylvania School of Engineering and Applied Sciences with a degree in biomedical engineering. But capacity--you know, I'm my degree of difficulty is harder than a smaller fund. I mean Fidelity is an unbelievable organization. It is not possible to invest in an index. Danoff has a degree in history from Harvard and an MBA from Wharton. 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. And so that's sort of what I do well, I think, is to try to ask for a call with the management team. Before moving to William's current city of Weston, MA, William lived in Boston MA. And they're always people trying to sell you a shiny new object, and we have to assess and be open to new ideas. Dr. Danoff has a research interest in outpatient joint replacement, rapid recovery protocols and multimodal pain regimens to decrease postoperative pain. 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. 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. 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 . The Fidelity Contrafund is a large-cap growth fund with $139 billion in . 5847 Education: BA Hunter College, City University of New York, 1976. But it's when you get a second king that you want to bet more. The private market has grown and, one could argue, became very overheated, let's say, in the 2017-2018 time horizon. He's a graduate of Harvard University and earned his MBA at the Wharton School of the University of Pennsylvania. We've been very lucky that in the last 10 years, these mega-cap companies have been able to continue to grow. The world, in many ways, has gotten smaller, and what's happening in China is very important to the rest of the global economy. I would say I probably see two or three private companies a week. And I hope everybody has a great year. 8/12/2019. He served as portfolio assistant for the Magellan Fund. Sep.17 -- Will Danoff, who as manager of Fidelity's Contrafund has beaten the S&P 500 for three decades, makes the case for active management in the era of E. I want to make sure the research department knows I care about the stock. Read our editorial policy to learn more about our process. We recommend you to check the complete list of Famous People born on . Will Danoff has been the fund manager of the Contrafund at Fidelity investments since 1990. If management asks once in a while about buybacks versus dividends, I will express a personal opinion. 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. I'm leveraging your industry expertise. Bill Danoff was born on May 7, 1946 in Springfield, Massachusetts, USA. I tend not to do well when we have to make a quick pivot. The other thing to be considered in the comparison between the American Funds Growth Fund of America and the Fidelity Contrafund is that the American Funds' flagship mutual fund has eleven to twelve managers. On the other hand, you do have to find the right balance in life. I feel really lucky to be here. Again, we're all a product of where we started in the business. If you think ABC Company is the best in your group, I'm willing to accept that. Wed like to share more about how we work and what drives our day-to-day business. So, the question is, Why haven't you? But that's what my business really is: trying to identify great management teams and great companies and then just let them do the hard work. Dudley S. Danoff, MD, FACS, is the attending urologic surgeon and founder/president of the Cedars-Sinai Medical Center Tower Urology Group in Los Angeles, California. And, again, paying attention and monitoring out-of-favor groups and trying to identify I can remember when everyone hated the airline industry. Since he took over on Sept. 17, 1990 . 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. Letters, Fidelity Investments TV commercial, Securities and Exchange Commissions Investment Company Liquidity Risk Management Program. 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. 2. Dr. Danoff has also served as President of the Association of Program Directors in Endocrinology and Metabolism (APDEM), and in that role, was a Charter Member of the APDEM/AACE Joint Liaison Education Committee. The market, as you know, has been unbelievably good. In 2015, Danoff's 25-year solo management became an issue of concern as Fidelity had not named a co-manager for Contrafund. I like to call companies. It's the largest single manager fund with about $130 billion and the track record of the fund is just outstanding. And I've added value relative to the index. Total value December 31, 2022 for Contrafund was $457,343, compared to $234,530 for the S&P 500 Index. 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