Fund In Focus: Fidelity NorthStar

Tillinghast’s scheduled retirement at the end of 2023 does not diminish this fund’s capabilities.

Ruth Saldanha 10 October, 2023 | 4:18AM
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Fidelity logo on building

This fund is a part of the latest Morningstar Prospects. Read more about Morningstar Prospects here.

Bronze-rated Fidelity NorthStar fund is an equity fund that has an unconstrained strategy that seeks to invest in the best companies anywhere in the world. According to Fidelity, the fund is managed by two veteran portfolio managers who are supported by Fidelity’s global resources, and this unique co-management approach aims to mitigate downside risk in volatile markets.

The fund came to Morningstar analysts Michael Dobson and Danielle LeClair’s attention because of its strong long- and short-term risk-adjusted returns. “Morningstar knows a few of the named portfolio managers from other analyst-covered strategies. Morningstar’s 2021 Outstanding Portfolio Manager award winner Joel Tillinghast and his team run half the fund,” Dobson and LeClair write.

So far in 2023, the Fidelity NorthStar has returned 4.8% against a category return of 2.73%. The fund has a management expense ratio of 1.09%.

Performance over time - growth of $10,000

Why is Fidelity NorthStar Worth Considering?

Fidelity NorthStar has three managers running the sleeves of this unconstrained global small/mid-cap strategy. Tillinghast and his team have 50%, value-oriented investor Dan Dupont uses a flexible North American strategy on his 25%, and U.S.-focused large-cap growth, managed by Kyle Weaver, has had 25% since November 2019.

“The strategy smartly combines three strong sleeves and allows each manager’s strength to shine while mitigating each of their risks. Weaver’s growth sleeve offsets both Dupont’s and Tillinghast’s value-bias, allowing the fund to participate in stronger markets without sacrificing protection in down markets. Since Weaver joined the mix, the fund has beaten 80% of its peers,” Dobson and LeClair say.

To them, Tillinghast’s scheduled retirement at the end of 2023 does not diminish this fund’s capabilities. Managers Sam Chamovitz and Morgen Peck have worked with him for many years.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Fidelity NorthStar Cl F46.22 CAD-0.16Rating

About Author

Ruth Saldanha

Ruth Saldanha  is Editorial Manager at Morningstar.ca. Follow her on Twitter @KarishmaRuth.

 
 
 

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