You do run a lot of money--I think over $100 billion in assets as of last year across the different strategies that you're responsible for, the largest of which is Contrafund. Danoff has a degree in history from Harvard and an MBA from Wharton. 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 mean, I was the retail analyst at Fidelity in the mid 80s. These are behemoth companies. 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. Adam Danoff Net Worth Adam Danoff Net Worth 2022, Age, Height, Relationships, Married, Dating, Family, Wiki Biography. Ptak: Bye. William Danoff, better known by her family name William Danoff, is a popular American Financial professional. As of July 2018, the fund has continued its outperformance over the S&P 500. Virtual Assistant is Fidelitys automated natural language search engine to help you find information on the Fidelity.com site. Insights from Fidelity's portfolio managers. Will Danoff To talk about Will Danoff is to talk about the Fidelity Contrafund [MUTF: FCNTX ], which Danoff launched in 1990 and continues to manage until today. Owen Danoff was born in Washington, United States. One--you have to make sure that you understand the threats to your existing holdings, but also, there's usually a pivot point where a concept then turns into a profitable business. But mostly that's market appreciation. How has that changed in the last few decades in which you've been running money? I don't whip the fund around. So, I'm trying to bet big with the bigger companies. But when it comes to some of the tech and the biotech, I'm treading more lightly. We've detected you are on Internet Explorer. It is not possible to invest in an index. 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. And if you're out there, somebody, I think, famous once said, You don't learn anything if you're talking all the time and something about You got one mouth and two ears, you should use them in that rough proportion, but it's just who I am. And they have basically gone from a startup airline in Europe to I think--they're like 25% of all passengers now flying in Europe fly on Ryanair, and they've done a great, great job. 10 years: Fidelity Contrafund 12.40%, S&P 500 Index 12.56%. Scientific Name: Nymphaea Odorata Ait. 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. I mean, Apple is the largest company in the world; they're very profitable. The world, in many ways, has gotten smaller, and what's happening in China is very important to the rest of the global economy. Again, we're all a product of where we started in the business. Such opinions are subject to change. Bloomberg Opinion columnist Barry Ritholtz speaks with Will Danoff, who is the Contrafund portfolio manager at Fidelity. Family (1) Spouse It's really hard for me to get excited about it like you. I'm interested in companies that are doing well, where the earnings outlook is positive, where earnings per share is growing. Danoff manages Fidelity's Contrafund and has for over thirty years. This includes companies that have shown a strong competitive position, high returns on capital, and solid free cash flow generation, as well as management teams that have been stewards of shareholder capital. 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. I would say I probably see two or three private companies a week. And if it is, I tend to go to a meeting or two--probably go to more meetings--because I say maybe I'll learn something by going to a meeting. This is sort of who I am. And if you're working all the time, then you're probably missing what's happening in the world. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation. You know, sort of like, basically the cost of that being whatever capital you'd have to divert from your next best idea, or does circle of competence, however you would define that, enter into it as well? Danoff: I think over time, maybe, you grow as an individual and you gain experience. Prior to becoming a portfolio manager, Will served as a retail analyst at Fidelity and for a time as assistant portfolio manager at Fidelity Magellan. Class: Magnoliopsida. But I think I can do it. So, it's a little easier. I want to make sure the research department knows I care about the stock. So, I said, Well, what's your strategy to grow your company in the next three to five years?, And I think that's a legitimate question to ask. What are we thinking about management? Danoff: Yeah, Jeff and Christine. Since he took over on Sept. 17, 1990 . 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. Turnover is maybe 35%. Growth of $10,000 invested in Contrafund versus S&P 500 Index, September 17, 1990 to December 31, 2022. And I've added value relative to the index. Go to YouTube and hear the story. But partly, it's just this opportunity. Danoff: That's a great question, Christine. Benz: So, you've mentioned circle of competence a couple of times. So, having this global research department can, again, help me understand trends, help me appreciate which of my U.S. companies are executing well all over the world, which ones are open to new ideas, which ones are monitoring these ideas and responding and strengthening their businesses. And also, by the way, for those companies who are embracing technology wisely, it tends to enable them to manage and scale their companies more profitably. So I would say they're higher risk. And if you haven't seen it, it's a very good letter. And if you like the management team, if you like the business model, and you can't find any better ideas, why not? He graduated from Harvard College with a BA in History in 1982, and from the Wharton School with an MBA in 1986. And that's one way to improve your understanding of important trends that important companies like Google are seeing and then assess the quality of the management below just the CFO or the CEO. 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. But there's no question that if you put it in the lens of working for your shareholders and doing what's right for the fund shareholders, you're probably going to be working harder and hanging out in the zeitgeist a lot less. Consistently outperforming the market is very hard. Here are my names, and I like XYZ railroad because the group's trading at 14 times earnings, and this ones trading at 11 times earnings. And I might say, Wow, that's interesting. 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. And, again, this is an iterative process. So, anyway, I would say again, for me, it's sort of like the chef tasting the soup, Jeff. There are large-cap companies that are in a growth mindset that, even though they're large, can continue to generate a lot of shareholder value. S&P 500 If you liked what you heard, please subscribe to and rate The Long View from Morningstar on iTunes, Google Play, Spotify, or wherever you get your podcast. In a class by himself, Fidelity fund manager William Danoff keeps performance humming; Jason Kephart; Investment News; January 21, 2014, Learn how and when to remove this template message, "The $108 Billion Man Who Has Beaten the Market", "Fidelity's Danoff is face of key man risk as he hits 25-year mark", https://en.wikipedia.org/w/index.php?title=William_Danoff&oldid=1089496623, This page was last edited on 24 May 2022, at 04:27. William Danoff (born 1959-60) is a vice-president and portfolio manager of Fidelity Contrafund, since 1990. I'm considering fcntx- fidelity contra fund- .82 ER. 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. Please see additional standard performance information. You can't necessarily call your trader and say buy $1 billion worth of company XYZ. I respect you. 9/17/1990-12/31/2022. You know, I've been a shareholder of Google, now Alphabet, since the IPO in 2004. 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. 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. So, you sell a little and then you realize you overreacted. Ptak: Well, I think that we could talk to you and ask questions of you for hours. It's the largest single manager fund with about $130 billion and the track record of the fund is just outstanding. I have to explain that I've become a little stodgy in my old age. This fund combines Will's focus on growth and investing in "best-of-breed" firms with Joel's focus on value, spec . He graduated from YALE UNIVERSITY in 1963. . Let's say, a 50-basis-point or 100-basis-point bet immediately. But I would say the real key to finding when to sell is when you're looking for new ideas and when you find a better idea. Jeff Ptak is an employee of Morningstar Research Services LLC. Masters in Business. Los Angeles 8635 W 3rd St Los Angeles, CA. Will Danoff, portfolio manager of Fidelity's Contrafund (FCNTX), is arguably a more impressive investor than Peter Lynch. How we use your information depends on the product and service that you use and your relationship with us. And whether that informs the way you manage the portfolio. But in every industry, there are new emerging themes, and hopefully, the Fidelity research department and I can identify those themes and find companies that are going to benefit from those themes. Fidelity does have a massive staff of analysts. And they've just kept executing. But at the time, people weren't paying attention to airlines and Europe was sort of a no growth, low growth space. And now people have two devices. So that's the other reason why I spend a lot of time going to these meetings. 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. 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 even in the utility space, you can find interesting special situations. 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 So, I'd say it's a very healthy give-and-take and dialogue. Adam Danoff net worth is $900,000. 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. Under his direction, the fund has averaged a whopping 14.13% return (about 2% greater than the benchmark S&P 500 index). But that's just speculation. But I have experience. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. And this letter was written by the parents of a young child, 1 year old boy. And sometimes it's just a matter of, Hey, you know, you haven't been to Boston in a couple of years. An error has occurred, please try again later. And the thought process was, Well, we have industry expertise, we have company expertise. Or do you play to your strengths and just put all your energies into what you're good at? 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. Sign In. Verify your identity, personalize the content you receive, or create and administer your account. But I would say capacity is one that I think a lot about. But capacity--you know, I'm my degree of difficulty is harder than a smaller fund. Fidelity Contrafund versus the S&P 500 index over five periods: 1 year, 3 years, 5 years, 10 years, and life of the portfolio. Clearly, there is survivor bias in the S&P 500, so it is hard to add value over time. I'm aware of my positions. Bio of Golfer Bettye Danoff, an LPGA Founder Bettye Danoff never won on the LPGA Tour, but she still has a very important place in tour history: She was one of the tour's 13 founding members. Will Danoff and Joel Tillinghast are veteran portfolio managers with different investment styles. I'm aware of that. Eclipsing the market over decades is astonishing. Indeed, Contrafund was recently home to more than $120 billion in assets and has ranked among the world's largest funds for many years. Why? Sep 19, 2020, 5:13 AM. You can't always assume that managements going to do the right thing. That's a really good point. He has been married to Joan Grbach since 1988. 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. So nowadays that can all be done electronically, immediately. So, I look at the fund. 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. The value of the fund's domestic and foreign investments will vary from day to day in response to many factors. Honestly, Jeff, you have to play to your strengths. He and Nivert, who would later become his wife, joined forces in a duo that was called Fat City. Fidelity Contrafund They have one child. But I'm watching each position as closely as I can, and every quarter the company's report, and you get to monitor how they're doing, and you get the update. There are some tricks to the trade that I implement. But when per-share earnings, per share free cash flow is growing, then I've got a lot of time. And we can also monitor all of these companies overseas. I mean, when Facebook went public, they were--and Google, they were--both nicely profitable, growing companies. 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. And in talking to company management--what do you think you get from that experience? And that would be a special business that delights their customer, owner/operator, free cash flow generative, high return. And also, I think at Fidelity, we got a great team. So, I'd say my emotional coefficient has improved. Are we going to get sold again to some conglomerate or to some private equity firm?. So, I don't know that many great investors who aren't great analysts. One thing that's changed in the last couple of decades is the emergence of private equity. Maybe another competitor is doing a better job. And maybe you have a king showing, and the other players have low card, so you can bet. Surgical Oncology, Urology 310-854-9898 Fax: 310-854-0267. Find Dr. Danoff's phone number, address, hospital affiliations and more. Copyright 2023 Morningstar, Inc. All rights reserved. 2. I am trying to reduce my turnover. And I'm seeing 25 or more companies a week. You've always been different in your approach. And so, one has to be very careful. But historically, I have found that if you can identify people that you trust, that are extremely knowledgeable about their industry and enthusiastic about their company, and in some cases, ideally, are founders of the companyand, therefore, the company is an expression of who they are and what they are and they really want to grow the company--then that's the perfect situation, especially if it's a good business and they have a differentiated product offering and a great value proposition. And so that's sort of what I do well, I think, is to try to ask for a call with the management team. Why are you here? And often there is a story to be told, and they want to express it to potentially large shareholders, and sometimes there is a subtext, and you've got to try to anticipate what are the other person's objectives. 8/12/2019. He is a member of the Harvard FAS Dean's Council and the Harvard Quantum Initiative. Thanks for joining us on The Long View. And being a very large fund has enabled me to have an unbelievably strong research department. I think they're managing their size very, very well. he is one of famous Singer with the age 75 years old group. Total value December 31, 2022 for Contrafund was $457,343, compared to $234,530 for the S&P 500 Index. For the best Barrons.com experience, please update to a modern browser. Danoff: Jeff, just again, to make sure the facts are correct. On the other hand, you do have to find the right balance in life. The cheap stock reflects how F-Prime . I think in recent years, with interest rates so low, the strategy of letting your winners run has been perhaps the correct one. 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. And, if I had to guess, I think that trend might slow down. There are obviously trade-offs. 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