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A Smaller-Cap Fund for Risk-Averse Investors

Silver-rated Fidelity Low-Priced Stock offers a unique, well-executed strategy despite its large size.


Robby Greengold: Risk-averse investors wanting exposure to small- and mid-cap equities should feel comfortable holding Fidelity Low-Priced Stock, which carries a Morningstar Analyst Rating of Silver.

Manager Joel Tillinghast uses a value-oriented strategy that focuses on competitively advantaged, financially sound businesses that he considers to be worthwhile long-term holdings. His approach is well-defined and consistently delivers a portfolio full of relatively inexpensive businesses with benchmark-beating returns on equity and modest debt.

The fund is among the mid-cap value category's largest, with over $35 billion in assets. That heft poses a particular challenge to effectively buying and selling the shares of smaller companies. But Tillinghast has produced exceptional risk-adjusted returns during his 28 years at the helm, and the fund continues to stand out for its unique portfolio and phenomenal execution.

Robby Greengold does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.