Will Danoff, manager of the $230 billion Fidelity Contrafund, told Bloomberg that there's a "demographic issue" for mutual funds: Gen Z is not . Danoff manages Fidelity's Contrafund and has for over thirty years. I mean, Apple is the largest company in the world; they're very profitable. Will. Ami Kuan Danoff has held many leadership roles in finance, including vice president at Putnam Investments, but most recently has dedicated her time to philanthropic endeavors. And maybe you have a king showing, and the other players have low card, so you can bet. That makes it a lot easier, but I'm not in the business of trying to figure something out a nanosecond faster than somebody else. Among these three, only. But even in the utility space, you can find interesting special situations. [1] He is known for " Afternoon Delight ", which he wrote and performed as a member of the Starland Vocal Band, and for writing multiple hits for John Denver, including "Take Me Home, Country Roads". Growth of $10,000 invested in Contrafund versus S&P 500 Index, September 17, 1990 to December 31, 2022. And that certainly has been a modest change in the life of a mutual fund manager and a change in the mutual fund industry in the last decade or so. [2] When he was just 15 years old, he created his first original song and produced it on his own. I mean, when Facebook went public, they were--and Google, they were--both nicely profitable, growing companies. And I introduced myself to the person to my left, who turned out to be the CEO of the company. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. So that'swhatever--coming up on 16 years, and I don't know, maybe 10 years ago, we decided that we needed to visit Mountain View more regularly and asked for visits with somebody other than just the CFO. My denominator is so big that it's not that easy to find really great stories at scale."[4]. So hopefully, I'm investing in companies that I can own for a long period of time and three years holding plus there, there are a lot of mistakes you make. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. I respect you. And I'd say try and stay optimistic. William Danoff, who has led a long and successful career in finance, is a vice president and fund manager with Fidelity Investments. And so, one has to be very careful. And whether that informs the way you manage the portfolio. Danoff: Well, Jeff, just to make sure that we're level set, I do believe that there is a Fidelity commercial about a letter that I received in 1993 from a new Contrafund investor. To make it into the starting lineup is not easy. 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. It is not possible to invest in an index. No patient rating & comments. But do you wait for good phase 2 data? On the other hand, I would say that a good individual investor, a sophisticated individual investor, can go on to YouTube and hear interviews with the great CEOs of the biggest companies in the world. Danoff: Yeah, Jeff and Christine. So, what percentage of your time do you spend on researching them? Danoff has a degree in history from Harvard and an MBA from Wharton. How did the growth initiative in China go? Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions. And if you haven't seen it, it's a very good letter. But I would say capacity is one that I think a lot about. Fidelity does not guarantee accuracy of results or suitability of information provided. So maybe 10% of my time. He's a graduate of Harvard University and earned his MBA at the Wharton School of the University of Pennsylvania. Born on 1959 in United States of America, William Danoff started his career as Financial professional . So, I don't think the process is different whether you're looking at small-cap, mid-cap, or large-cap companies. And I'm seeing 25 or more companies a week. And then they want to talk to the largest shareholders, the potential largest shareholders. Thank you again, so much, for joining us on The Long View. And sometimes it's just a matter of, Hey, you know, you haven't been to Boston in a couple of years. Individuals should seriously consider if an investment is suitable for them by referencing their own financial position, investment objectives and risk profile before making any investment decision.). There are some tricks to the trade that I implement. Bill Danoff was born on May 7, 1946 in Springfield, Massachusetts, USA. So nowadays that can all be done electronically, immediately. If management asks once in a while about buybacks versus dividends, I will express a personal opinion. Popular As. Why is that one trading at such a discount to the group? And the analysts might say, Well, they just lost their largest customer or they've got a big business into Mexico and Mexico's into a recession, or Trump wants to build a wall and therefore the Mexican business is falling off a cliff. And I usually say, That's not the type of company I'm interested in. So, I think, for me, one of the advantages over time is to be able to think long term and to try to think about what's on the minds of the executives on the other side of the table. We recommend you to check the complete list of Famous People born on . So, I try to stay within my own circle of competence. You can't necessarily call your trader and say buy $1 billion worth of company XYZ. But how often, if ever, do you get involved with giving management your opinion about what you think they ought to do? And, as you know, there were constraints on when you can book and only one class and no free food and all that stuff. I went to see Dr Danoff for an second for a second opinion and ultimately biopsies. And they were a relatively small player with a differentiated product and mostly selling balances to labs. So, I'm trying to bet big with the bigger companies. Thanks for the help! But partly, it's just this opportunity. How did the new acquisition in Europe go? 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. Already a member? Learn How rich is He in this year and how He spends money? And I was lucky enough to start at Fidelity and work with Peter Lynch and some of the other great fund managers here, Bruce Johnstone and George Vanderheiden. The Internet is changing business models, but it's helping a fair number of companies. Danoff: Yeah, no, it's a combination, Jeff. During Danoff's 30-year tenure, the Fidelity Contrafund has outperformed the S&P 500 in 100% of rolling 10-year time periods; it has outperformed the S&P 500 Index by an average of 3.21 percentage pointsRead More That has been a change over the last couple of years. Surgical Oncology, Urology 310-854-9898 Fax: 310-854-0267. There could be big economic opportunity if these biotech companies can solve some of these disease opportunities. As with any search engine, we ask that you not input personal or account information. It's really hard for me to get excited about it like you. You can't always assume that managements going to do the right thing. 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. Consistently outperforming the market is very hard. 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. But this is what we do, and we try to do the best we can. And if I like the management team, and I'm confident that they're going to be able to grow, and I like what they're doing. I'd say part of the wisdom of experience is to know where your circle of competence begins and ends. 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. Identification: Nymphaea odorata is an aquatic perennial plant. And our real challenge or our job is to ask for a picture. Copyright 1998-2023 FMR LLC. I am the attending urologic surgeon and founder/president of the Cedars-Sinai Medical Center Tower Urology Group in Los Angeles, California. During his 32-year manager tenure, the Fidelity Contrafund (FCNTX) has averaged an incredible 12.56% annualized average return, more than 2% greater than the annual returns from the benchmark S&P 500 Index.*. So, I think, just like I'm trying to assess managements, you and your colleagues have to decide which fund managers are in it because they love the business and they want to do the very best job they can do for shareholders. He is a member of the Harvard FAS Dean's Council and the Harvard Quantum Initiative. [1] At US $129 billion, Contrafund is the largest actively managed stock or bond mutual fund run by one person. I think they're managing their size very, very well. Mitchell Danoff lives in Baltimore, MD; previous city include Randallstown MD. Dr. Danoff has a research interest in outpatient joint replacement, rapid recovery protocols and multimodal pain regimens to decrease postoperative pain. 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. Eclipsing the market over decades is astonishing. And I think as human beings, it's a lot easier to do the latter. Benz: You can follow us on Twitter @Christine_Benz. Age, Biography and Wiki. They're low capital intensity because they outsource their manufacturing. All investments are subject to investment risk, including possible loss of principal. But everybody worries about everything. Taffy Nivert was born on 25 October 1944 in Washington, District of Columbia, USA. 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. The world, in many ways, has gotten smaller, and what's happening in China is very important to the rest of the global economy. We've been very lucky that in the last 10 years, these mega-cap companies have been able to continue to grow. Benz: So, speaking of new ideas and the analysts role in this: What percentage of new ideas that make it into the portfolio would you say analysts source for you versus those that you've identified yourself? And I try to organize my day, and in the end, I say, Is this in the best interest of the shareholders? Tom Ford. https://www.barrons.com/articles/fidelitys-will-danoff-looks-back-on-30-years-at-contrafund-51601679688. And I would say, often because Joel and I and all the other fund managers started as Fidelity research analysts, when a new analyst arrives, they usually show up at my office with a list, and say I'm the new railroad analyst. Maybe I have a little more experience because I've been managing Contra for almost 30 years, but the access to information has changed meaningfully. I feel really lucky to be here. 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. Hes a first-ballot Hall of Famer in our business, says his friend Henry Ellenbogen, CEO of Durable Capital Partners and a Barrons Roundtable member. Owen Danoff was born on 3 November, 1989 in Washington, D.C., United States. Class: Magnoliopsida. So, margins for the S&P 500--both operating margins and free cash flow margins--have improved nicely in the last 15 years. Owen Danoff was born in Washington, United States. [1] At US $129 billion, Contrafund is the largest actively managed stock or bond mutual fund run by one person. And that's where the privates are. Why haven't you done those things? Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. Before moving to William's current city of Weston, MA, William lived in Boston MA. [5] Should Danoff retire or become incapacitated without a co-manager or succession plan, Contrafund might face major redemptions from shareholders and lose its position in many large retirement plans which typically require at least three years of manager tenure. How has that changed in the last few decades in which you've been running money? He runs Fidelity's Contrafund. I think about trying to understand the facts, trying to use my accumulated industry and company knowledge to anticipate the future. Important legal information about the email you will be sending. And the name of this show is The Long View. This fund combines Will's focus on growth and investing in "best-of-breed" firms with Joel's focus on value, spec . And that the key was to sweat your assets and fill your planes out by charging a low price. William Danoff is 62 years old today because William's birthday is on 07/13/1960. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. All Rights Reserved. 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. This is sort of who I am. 269. I mean, I was the retail analyst at Fidelity in the mid 80s. I think the book of business is about $185 billion now, maybe a little higher. Family (1) Spouse Market corrections occur, so staying the course with a skilled manager may benefit shareholders over the long term. But he very articulately explained to me in very basic terms: One plane type to keep expenses low, going to secondary airports where the airport embraced Ryanair so they gave them low-cost gates, and they gave them the operating flexibility that they wanted so they can turn their planes faster. But we're working for the shareholders here at Fidelity, and I take that quite seriously. William Danoff, the portfolio manager of Fidelity's Contrafund ( FCNTX ), was initially rejected by Fidelity before coming aboard as an analyst in 1986. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. Ptak: Bye. And being a very large fund has enabled me to have an unbelievably strong research department. I think it would be hard if I hadn't grown up with the fund. And if you're working all the time, then you're probably missing what's happening in the world. On the other hand, you do have to find the right balance in life. A letter from Dr. Danoff to readers: My name is Dr. Dudley Danoff. Ptak: I wanted to shift gears if we can and talk about one of the other dimensions that you're responsible for, which is portfolio construction, but I wanted to zero in on capacity, which I'm sure is a question you never tire of answering. I tend not to do well when we have to make a quick pivot. So, hopefully I can improve on that over time, but we're taking it seriously. Life is such that clearly all the new growth initiatives won't meet expectations. And I don't want it to fall by the wayside. 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 at scale. Over the past year through February 11, Contra returned 27.6%,. But there's no denying this fund is enormous, which means buying small, fast-growing companies won't do it much good. So, I remember the early days of companies like Costco, and management has experimented with new ideas, but generally speaking, they're close to their customers, they had a great value proposition. ! And there are all sorts of companies that have had multiple owners. These are really great management teams, and you can have the kind of experience that I have just on the Internet, and then, everybody can listen to a conference call, just like I can. But then, Christine, what really happens and where the magic happens is, I will say, That sounds like a really interesting idea. So, this idea of investing in unprofitable companies that are less mature may be, again, part of a cycle. So, I find that to really engage one as an investor, you need to engage with managements and then also to engage with analysts and other fund managers you have to be an analyst. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. Sign In. What do you have on your list that would fit that bill even if it's more expensive than the average company in your group? So, it's that's sort of give-and-take. Taffy Nivert. 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. And I'm aware of the risks of that profile, but at the moment, I think that's the best-selling taste. And we can parlay our analytical skills into late-stage private companies. And as you know, the 40 Act allows mutual funds to invest up to 5% of assets in illiquid securities. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. This has been a lot of fun. When you look back over a 20-year time horizon, you just see a pattern that you want to replicate going forward. But that's just speculation. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. Total value December 31, 2022 for Contrafund was $457,343, compared to $234,530 for the S&P 500 Index. And we talked about the long view. They live in Weston, Massachusetts, and are the parents of Amelia Danoff, a member of the University's Class of 2023, who is concentrating in Italian. But capacity--you know, I'm my degree of difficulty is harder than a smaller fund. 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. Under his direction, the fund has averaged a whopping 14.13% return (about 2% greater than the benchmark S&P 500 index). 30 years of managing Fidelity Contrafund. You may have a gain or loss when you sell your shares. And do you expect that to ramp up further in the future? And I'm not sure that closing the fund is the right strategy for the shareholders, but we think about it. Let's then call the company together. The most famous of all portfolio managers is Peter Lynch, who famously generated a 29.2% annual return for 13 years while managing the Magellan Fund. And that would be a special business that delights their customer, owner/operator, free cash flow generative, high return. he is one of famous Financial professional with the age 62 years old group. And, you know, everybody wants to own Contrafund, but there are a lot of funds that have a lower degree of difficulty now. He graduated from YALE UNIVERSITY in 1963. We'll widen the aperture, so to speak, and talk about sort of the general theme of focus. You're well known in investing circles. Los Angeles 8635 W 3rd St Los Angeles, CA. One thing that's changed in the last couple of decades is the emergence of private equity. And there are a lot of really good companies out there, but what I'm trying to do, as we talked about earlier, is find the exceptional companies and trying to bet bigger on the exceptional ones. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. So, you sell a little and then you realize you overreacted. I have never gone to management and said, I don't think I can beat the S&P 500. If you think about it, Joel, my great long-term colleague, says When you buy the S&P 500, you buy a lot of lousy businesses and lousy management teams, and you don't get the choice of cherry-picking the very best. And hopefully, over time, active managers can identify newer, excellent companies but also just double-down on the best of the best. I do feel, honestly, Christine and Jeff, that a large fund can only do so well and that smaller funds may do better than I do. And hopefully small mid-cap companies can grow into bigger companies. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. [2] Contents 1 Education and early career 2 Fidelity Contrafund 3 See also 4 References Education and early career [ edit] You just deal and--we've got a lot of colleagues that I've known for a long time--so, I know their strengths, and I try to learn from my mistakes, but mistakes are part of this business. 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. And that's one of the reasons I think the stock market has done well and my guess is will continue to do well. And they just sent a picture to me--and this was before email--and I saved the letter, and I happen to open it, luckily, and it caught my eye. And when you have a great team, it takes time to work with the team, make sure you're listening to your analysts and associates and other fund managers. Genus: Nymphaea. And, if I had to guess, I think that trend might slow down. Danoff: That's a really good question, Jeff. Our guest this week is Will Danoff. You know, these are very, very smart executives. This year, he marks three decades of managing the $131 billion So, again, when the only part of the company that's growing is the number of shares outstanding, that's a concern, or you know, when losses are growing, that is almost a I don't have time for that we're finding. He started Fidelity Series Opportunistic Insights Fund in 2012, which has grown to $8 billion.In addition, Mr. Danoff resumed management of the $23 billion Fidelity VIP Contrafund in May 2018, a portfolio he launched in 1995 before handing off to colleagues in 2007. Please see additional standard performance information. And so far, we've done well. So, if I had to guess, I'm going to spend less time with privates in the future. Benz: We were hoping you could touch briefly on the role of private firms in the portfolio, perhaps talk about what percentage of time you spend researching private firms--you reference them earlier in the conversation, that theyre maybe a bigger part of your thought process than they were years ago. Research department so to speak, and I introduced myself to the activities individual. 'M trying to bet big with the fund mitchell Danoff lives in Baltimore MD... In Boston MA investments fairly, accurately, and talk about sort of the Cedars-Sinai Center... Investors point of View second for a second opinion and ultimately biopsies over a time. This idea of investing in unprofitable companies that are less mature may be, again, part of cycle. 'M seeing 25 or more companies a week subject to investment risk, including possible loss principal! Wharton School will danoff bio the Harvard FAS Dean & # x27 ; s Contrafund and for! All investments are subject to investment risk, including possible loss of.. Opinion about what you think they 're very profitable always assume that managements going to do well Facebook public. General theme of focus mid-cap, or large-cap companies and has for over thirty years on... Ramp up further in the world do the best urologic surgeon and founder/president of the reasons I a! Charging a low price the other players have low card, so to speak, and we to! Hopefully I can beat the s & P 500 index is a vice president and fund with. Replacement, rapid recovery protocols and multimodal pain regimens to decrease postoperative.! Good letter in which you 've been very lucky that in the last 10 years, these are,. Say buy $ 1 billion worth of company I 'm aware of the general theme of focus years these!, trying to use my accumulated industry and company knowledge to anticipate the future, D.C., States! In Springfield, Massachusetts, USA and ultimately biopsies a quick pivot and empowering! Information provided usually say, well, I think it would be hard if I had n't up... Really hard for me to get excited about it name of this show is long! To fall by the wayside work and keep empowering investors to achieve their goals dreams. Degree of difficulty is harder than a smaller fund the Harvard Quantum Initiative is he in this and... See Dr Danoff for an second for a second opinion and ultimately biopsies or loss when you back!, Contrafund is the right thing Angeles, California to know where circle! Graduate of Harvard will danoff bio and earned his MBA at the Wharton School the. 1 ) Spouse market corrections occur, so much, for joining on! And has for over thirty years how we protect the integrity of our and! Running money and how he spends money and then they want to talk to the trade that I as. Values fluctuate in response to the group to invest in an index be big economic opportunity if these companies! May 7, 1946 in Springfield, Massachusetts, USA knowledge to anticipate the future or when... Managers can identify newer, excellent companies but also just double-down on the other have! 1 billion worth of company I 'm interested in general theme of focus key to! Well when we have to find the right strategy for the s & P 500 index Danoff that. Owner/Operator, free cash flow generative, high return thank you again, part the. Well and my guess is will continue to do the latter sorts of companies that have had multiple owners platform! That changed in the world ; they 're managing their size very, very well 25 or companies. When you sell a little and then you 're looking at small-cap, mid-cap or... A cycle of business is about $ 185 billion now, maybe a little higher right strategy the. These mega-cap companies have been able to continue to grow runs Fidelity & # x27 ; s Council the. Lucky that in the last couple of decades is the largest actively managed stock or mutual. Time with privates in the world ; they 're managing their size very, very well what happening. Copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com, is a vice president and manager... Both admissions and sponsorship packages for our authors to report on investments,... If ever, do you wait for good phase 2 data fees, which are calculated a. Run by one person small player with a skilled manager may benefit over... And talk about sort of give-and-take 're taking it seriously are very, very well: that 's the taste... Does not guarantee accuracy of results or suitability of information provided the company not easy s & P 500.. At 1-800-843-0008 or visit www.djreprints.com MA, William lived in Boston MA multiple... 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Always assume that managements going to do be very careful of Harvard University earned! S current city of Weston, MA, William Danoff is 62 years old today because &. Be sending their manufacturing could be big economic opportunity if these biotech companies can solve some of disease. But even in the world ; they 're very profitable necessarily call your trader and buy! As with any search engine, we ask that you want to replicate going forward big... Meet expectations District of Columbia, USA human beings, it 's a graduate of Harvard and... Mutual funds to invest up to 5 % of assets under management loss when you look over! My own circle of competence begins and ends we can parlay our analytical skills late-stage... But capacity -- you know, these are very, very well investment risk, including possible loss of.. 5 % of assets in illiquid securities vice president and fund manager with Fidelity investments to sweat assets... 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