in the past five years and is in the top quintile of performers in 2023, according to Morningstar. The fund's outperformance extends back to at least the financial crisis, as it's in the top 5% of its category in the last 15 years.
Kelley, a veteran of Goldman Sachs and Morgan Stanley, is in his 18th year at Fidelity and has managed the storied fund since July 2018. In a recent interview with Insider, he explained that the key to consistently beating his index has been swimming against the tide. "When everyone is fearful, running for the hills — credit spreads are widening, unemployment trends are heading in the wrong direction, and most retail investors want to sell — that's very much the best opportunity, historically, to want to buy equities at very attractive future returns," Kelley told Insider.
"You have this foundation of the fixed income portion of the portfolio that's producing this very stable income combined with the equity and growth component where you're getting a little growth kicker and the higher returns of equities," Kelley said. Kelley continued:"You can basically participate pretty well with equities in up markets and not have the big drawdowns that the stock market has because you have the ballast of that fixed income portfolio that's holding the ship afloat."
The key phrase is “fund category”. How did it do against Warren Buffett’s recommendation of Vanguard S&P Fund VOO, net of costs and fees? My guess knowing WB, is the Fidelity fund faired negatively.