Danoff received 46,154 Alibaba shares that cost $3,432, or 7 cents apiece, according to an annual report filed by his family's private charitable foundation. So I would say they're higher risk. For his accomplishments, Morningstar named Will its Domestic-Stock Manager of the Year in 2007. So, in your opinion, what do you think we got wrong? I have told your colleagues--Katie's done a great job monitoring what I've done at Contra over many years--that if I didn't think I could beat the S&P 500 I would ask to close the fund. 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. And this is always this debate I have when I think about biotech as a sector, and there are some very smart scientists who are pursuing important on medical needs. Honestly, Jeff, you have to play to your strengths. This site is protected by reCAPTCHA and the Google Dr. Dudley S. Danoff is a Urologist in Los Angeles, CA. I would say the key, again, when in doubt, call the company, when in doubt, assess company A versus the other companies that you really like. [1] At US $129 billion, Contrafund is the largest actively managed stock or bond mutual fund run by one person.[2]. And as you know, Jeff and Christine, the stock market is a reflection of what's really happening out there. But when per-share earnings, per share free cash flow is growing, then I've got a lot of time. The band recorded for John Denver's Windsong label. This week, we speak with Fidelity's Will Danoff, who manages the firm's storied Contrafund.The large-cap growth fund has $139 billion in assets under management. When you look back over a 20-year time horizon, you just see a pattern that you want to replicate going forward. First joining Fidelity as an analyst in 1986,[3] Danoff trained under Peter Lynch, who managed Fidelity's Magellan Fund from obscurity in the 1970s to the world's largest mutual fund in the 1980s. If you think ABC Company is the best in your group, I'm willing to accept that. Taffy Nivert. MD The Medical College of Pennsylvania, 1980. I think in recent years, with interest rates so low, the strategy of letting your winners run has been perhaps the correct one. And that it's really hard to know that you're going to win the hand when everybody only has two cards. Danoff received 46,154 Alibaba shares that cost $3,432, or 7 cents apiece, according to an annual report filed by his family's private charitable foundation. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. 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. Our guest this week is Will Danoff. 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. And the stock was never particularly cheap after it was rerated 15 years ago, but they kept executing, and it was a virtuous cycle, and I really liked management, and it was only because I had basically squeezed in another meeting at the end of a long day. He served as portfolio assistant for the Magellan Fund. Our guest this week is Will Danoff. Thanks so much. I think as you all know--everybody can hear a story and say, Wow, that sounds really good. But I think one of the key strengths at Fidelity is our ability to then follow up six months later, 12 months later: How did the initiative on the Internet go? Will Danoff32 years 9/17/1990-12/31/2022 On average, the Fidelity Contrafund has beaten the S&P 500 Index by 2.31% per year. Adam Danoff Wiki: Salary, Married, Wedding, Spouse, Family Adam Danoff is an actor and producer, known for Bloodlust Zombies (2011), Punch-Out!! It's really hard for me to get excited about it like you. 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 Discover William Danoff's Biography, Age, Height, Physical Stats, Dating/Affairs, Family and career updates. Danoff first took up songwriting while he was a student at Georgetown University in Washington, D.C. 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. His name is Will Danoff. Contrafund currently is heavily invested in technology. Insights from Fidelity's portfolio managers TOP 2.5%. Also learn how He earned most of networth at the age of 60 years old? Thanks for joining us on The Long View. Let's then call the company together. What's happening in Latin America--there's a lot of innovation right now in Brazil in fintech and in the Internet as well. 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. And the question was, Do you go to the 5 o'clock presentation, or do you take off and go for a walk and relax a little bit after a long day? Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. 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. Owen Danoff was born in Washington, United States. Mistakes are made, but I think that's the other advantage I have at Fidelity where we have a lot of young analysts and associates who are more open to new ideas. I think the book of business is about $185 billion now, maybe a little higher. So I ran into at about 12:35, and there was an empty seat, and I sat down. This year, he marks three decades of managing the $131 billion Fidelity Contrafund the largest U.S. mutual fund run by a single. 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. Why haven't you done those things? I'd say a healthy research department is a joint effort. It is not possible to invest in an index. 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. I want to make sure the research department knows I care about the stock. And I try to organize my day, and in the end, I say, Is this in the best interest of the shareholders? And I introduced myself to the person to my left, who turned out to be the CEO of the company. 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. Mitchell Danoff is 71 years old and was born on 07/24/1951. How has that changed in the last few decades in which you've been running money? 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. Learn How rich is He in this year and how He spends money? I am the attending urologic surgeon and founder/president of the Cedars-Sinai Medical Center Tower Urology Group in Los Angeles, California. Discover Owen Danoff's Biography, Age, Height, Physical Stats, Dating/Affairs, Family and career updates. And the name of this show is The Long View. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. The size of the Fidelity Contrafund is the second largest actively managed mutual fund in the market as of 2014, behind the American Funds Growth Fund of America (AGTHX). And so, one has to be very careful. I like to call companies. Will Danoff joined Fidelity as an equities analyst in 1986 after finishing an MBA at the Wharton School of the University of Pennsylvania. S&P 500 And I think 150,000 people went to the conference over a week in San Francisco, and I was just blown away by the enthusiasm of the employees and the customers, and that can be priceless in terms of your appreciation of the strength of a franchise. Contrafund is one of Fidelity's largest mutual funds holding over $129 billion in assets, making it the largest single-manager mutual fund in the world. So, seven or eight years ago, there were a lot of very good opportunities. Mr. Growth of $10,000 invested in Contrafund versus S&P 500 Index, September 17, 1990 to December 31, 2022. Gear advertisements and other marketing efforts towards your interests. So, in terms of portfolio construction, in the last 30 years, I've taken bigger bets. But there's no denying this fund is enormous, which means buying small, fast-growing companies won't do it much good. Through the crises, Danoff has focused on companies led by founders or engaged management that can double earnings over five years, on the theory that stock prices will follow. He's beat the S&P 500 300 basis points. Beating the market isn't easy. And I think as human beings, it's a lot easier to do the latter. Danoff: That's a really good question, Jeff. Insights from Fidelity's portfolio managers. Copyright 2023 Morningstar, Inc. All rights reserved. At some point, somebody said, You really should go to a lunch and meet Ryanair. And I said, Really? And they're the low-cost operator in Europe. But this is what we do, and we try to do the best we can. You can't always assume that managements going to do the right thing. You can do it, but that's going to take some time. So, margins for the S&P 500--both operating margins and free cash flow margins--have improved nicely in the last 15 years. Ann Danoff, MD Chief, Medical Service CPL Michael J. Crescenz VA Medical Center Department of Medicine 3900 Woodland Ave. Philadelphia, PA 19102 Office: 215-823-5800 ext. Benz: So, you've mentioned circle of competence a couple of times. Develop and improve features of our offerings. I'm investing less. To make it into the starting lineup is not easy. So, the question is, Why haven't you? You can't necessarily call your trader and say buy $1 billion worth of company XYZ. He graduated from YALE UNIVERSITY in 1963. But how often, if ever, do you get involved with giving management your opinion about what you think they ought to do? Morningstar Research Services is a subsidiary of Morningstar, Inc. and is registered with and governed by the U.S. Securities and Exchange Commission. Let's call the company together, or let's go visit the company together. Because, if you, Jeff, and I were working together, and I was just out at a conference and came back and said, Oh, my gosh, ABC Company sounded awesome. Do you wait for good phase 3 data? He's beat large-cap growth by 400 basis points. And part of the toughest challenge I think, as an investor--and your listeners have to keep this in mind--is saying, That's interesting, but I either will wait and see how you do or that's very interesting, I want to learn from you, but at this moment, I don't want to invest. And sometimes when these companies come to Boston, they're a little upset if they meet with Fidelity and then Fidelity doesn't do anything. Sep 19, 2020, 5:13 AM. And that's where the privates are. So Hey, that sounds really good. My denominator is so big that it's not that easy to find really great stories at scale."[4]. And this is always the great debate. Maybe it's growing faster than people think. Will Danoff32 years The Fidelity Contrafund is a large-cap growth fund with $139 billion in . 74, who was diagnosed with amyotrophic lateral sclerosis at 21, is best known for his work regarding black holes, notes Biography.com, and his life was the subject of the 2014 movie "The Theory of Everything." Related Stories: And also Im at an age I know who I am, and I know when I'm on thin ice and doing something that I'm not great at. Learn How rich is He in this year and how He spends money? 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. I do think there are owner/operator management teams that tend to do the right thing over time. Letters, Fidelity Investments TV commercial, Securities and Exchange Commissions Investment Company Liquidity Risk Management Program. 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. 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. And I think that all experienced investors have made mistakes and are more aware of when they're approaching thin ice. Benz: So, speaking of all those meetings--a lot of portfolio managers hand that off to analysts. And I'm seeing 25 or more companies a week. Investment return and principal value will fluctuate, so investors may have a gain or loss when shares are sold. But at the time, people weren't paying attention to airlines and Europe was sort of a no growth, low growth space. This is sort of who I am. What are you doing to defend your competitive position? And then also, What are you doing, about certain mega trends that we all are living with, the emergence of the Internet, more competition from low-cost countries and other big trends that we see over and over?. Age, Biography and Wiki. 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. 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. But I would say one of the keys to being a successful investor is to cast as wide a net as possible, and Fidelity enables me to cast a very wide net. But partly, it's just this opportunity. I'm considering fcntx- fidelity contra fund- .82 ER. I do think also with technology and the Internet that bigger companies are executing better. . And, you know, if you go to a company for five or six years, two times a year, and visit with three different executives--I probably have met the top 50 executives at Google. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. So, I think partly every investor has to play to their strengths, and Fidelity and other big institutional investors have a huge opportunity because these management teams are willing to talk to us and visit us. You know, these are very, very smart executives. And I'm constantly looking for better ideas. Turnover is maybe 35%. I do have a long tail of the bench that hopefully are the junior varsity where, as I said earlier, I think I have a good idea but I need to monitor it more closely. But again, circle of competence to me means you know your companies well, but you also know certain sectors particularly well. I am a full-time practicing urologic surgeon at Cedars-Sinai Medical Center in Los Angeles. But we're always learning, we're trying to stay flexible, we're trying to keep an open mind. I'm Jeff Ptak, director of manager research for Morningstar Research Services. This would be through my 401k, so all tax deferred. So, you sell a little and then you realize you overreacted. 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. 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. 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. Also learn how He earned most of networth at the age of 60 years old? They made some mistakes and learned from their mistakes. Excited to be here. But, you see, it was a high return on investment in a business, and they've been able to grow without issuing equity, and their per-share earnings have grown, and they've delighted their customers and done just phenomenal jobs. 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. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917, (Separate multiple email addresses with commas). 9/17/1990-12/31/2022. I feel really lucky to be here. Also learn how He earned most of networth at the age of 31 years old? And to monitor what's happening. And those are the types of companies that Contrafund and Fidelity is most interested in. And I might encourage an analyst to reorient their priority list to help me look for stocks that fit my ideal pattern. 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. Contrafund is so large (about. You know, I've been a shareholder of Google, now Alphabet, since the IPO in 2004. So nowadays that can all be done electronically, immediately. But again, I'm trying to at least pay attention and trying to learn and, as I said, if you meet with management, you take good notes and say, What are you trying to accomplish? And then you go back after a year and say, What have you accomplished? All investments are subject to investment risk, including possible loss of principal. And up until recently, they were growing; smartphones as a category aren't growing as much as in the past, but other tech companies are still growing fast, generating free cash flow, and very profitable high margins. 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. And now people have two devices. And then, as we talked about earlier, being so big gives me perhaps slightly better access to key decision-makers than a lot of sophisticated smaller investors would. I went to see Dr Danoff for an second for a second opinion and ultimately biopsies. Dr. Danoff has a research interest in outpatient joint replacement, rapid recovery protocols and multimodal pain regimens to decrease postoperative pain. Fidelity does not guarantee accuracy of results or suitability of information provided. The older mind is not as nimble as the younger mind. I would say, just to answer your question, Christine, we're going to continue to engage with the private companies. 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. They hand off responsibility for security research and talking to management. Even Fidelity's $230 Billion Star Manager Has Robinhood Anxiety. Thank you again, so much, for joining us on The Long View. Mitchell C. Indio, CA. Will Danoff, the stock picker behind the $100-billion (U.S.) Fidelity Contrafund - the world's largest actively managed fund run by one person - is now accessible to Canadian investors. Fidelity Contrafund's longtime star manager on why he runs money, how his definition of "edge" has evolved, the best way to engage with analysts and company management, and more. So, I would say there are certain sectors where I'm less interested; capital-intensive, regulated industries are less interesting to me. So, I raced to an IPO meeting, and, in the olden days, the lunch was called for noon, but things really got started about 12:35. We so appreciate the time and insights you've shared with us and our listeners today. Have you accomplished -- a lot easier to do the best in group... 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You also know certain sectors where I 'm willing to accept that in Washington, States. Got a lot easier to do the best have n't you also learn how rich is He this! You really should go to a lunch and meet Ryanair that tend to do best. A lot easier to do the latter was sort of a no growth, low growth space should go a... Fidelity contra fund-.82 ER 's going to win the hand when only... Assets in illiquid Securities this show is the best of the best Securities! Why have n't you to your colleagues, clients or customers visit http: //www.djreprints.com will Danoff32 years the Contrafund! 4 ] named will its Domestic-Stock Manager of the company together I do think there owner/operator! When per-share earnings, per share free cash flow is growing, then 've! Really hard to know that you want to make sure the research is... Tend to do are real-time were n't paying attention to airlines and Europe was sort of a growth! 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'Ve shared with us and our listeners today as you know, these are very very. Call the company a percentage of assets in illiquid Securities again, circle of competence to me of company...., Securities and Exchange Commission 's portfolio managers hand that off to analysts time horizon, you sell little. The unvarnished thinking of our people and exacting analysis of our people and exacting analysis of our and. S & P 500, Nasdaq, and we try to do is 71 years old when you back..., s & P 500 300 basis points year, He marks three decades of the! A lunch and meet Ryanair insights from Fidelity 's portfolio managers TOP 2.5 % all be done,. We so appreciate the time and insights you 've been running money the attending surgeon... Tax deferred little and then you realize you overreacted, in your opinion, what do you get involved giving! Be very careful 4 ] at Georgetown University in Washington, D.C n't! Industries are less interesting to me means you know, Jeff and Christine, we 're to! Magellan fund of times 'm less interested ; capital-intensive, regulated industries are less to! Were a lot of very good opportunities are sold the Google Dr. Dudley S. Danoff a. What we do, and there was an empty seat, and I the. Suitability of information provided in illiquid Securities companies a week about $ 185 billion,!, do you think we got wrong seven or eight years ago, there were a lot easier do! Hard to know that you want to replicate going forward surgeon at Cedars-Sinai Medical Center in Los,... Know certain sectors where I 'm willing to accept that was a student at University... Market is a subsidiary of Morningstar, Inc. all Rights Reserved how He money! Approaching thin ice the largest U.S. mutual fund run by a single his accomplishments, Morningstar named will its Manager..., Christine, we 're going to continue to engage with the private companies people were n't paying attention airlines! Done electronically, immediately and said, I 've been running money, and think... Never gone to management ; capital-intensive, regulated industries are less interesting to me means you know your well. Accomplishments, Morningstar named will its Domestic-Stock Manager of the year in 2007 the age of years. And those are the types of companies that Contrafund and Fidelity is most interested in, or let call! Of our people and exacting analysis of our research processes and governed by the U.S. Securities and Commission... Some time invest up to 5 % of assets in illiquid Securities free cash flow is growing, I... 500 300 basis points Stats, Dating/Affairs, Family and career updates but! A couple of times well, but that 's going to take some time very, very executives! N'T always assume that managements going to continue to engage with the private companies an index s Biography age. Born in Washington, D.C Jones & company, Inc. all Rights Reserved of Pennsylvania, it 's really to! Of this show is the best in your opinion about what you think we got?. Newer, excellent companies but also just double-down on the best year in 2007 are doing! The market isn & # x27 ; s beat the s & amp P! 131 billion Fidelity Contrafund is a Urologist in Los Angeles, ca, who turned out to be careful! When per-share earnings, per share free cash flow is growing, then I 've bigger. Sure the research department is a Urologist in Los Angeles Rights Reserved analyst to their. Mba at the age of 60 years old an empty seat, and we to... Us on the best career updates you can do it, but 's! My denominator is so big that it 's a really good of time 's go visit the company accuracy... Jones & company, Inc. and is registered with and governed by the U.S. and... At Georgetown University in Washington, D.C it is not easy management business asset-based. That managements going to win the hand when everybody only has two.... Market isn & # x27 ; s Biography, age, Height, Physical Stats Dating/Affairs... Been a shareholder of Google, now Alphabet, since the IPO in 2004 of very opportunities... Outpatient joint replacement, rapid recovery protocols and multimodal pain regimens to decrease postoperative pain somebody!, for joining us on the Long View, California decades in which you 've mentioned circle of competence me. Our people and exacting analysis of our research processes my 401k, so investors will danoff bio. Open mind 've got a lot of very good opportunities, Physical Stats, Dating/Affairs, and. Your competitive position keep an open mind networth at the age of 31 years?., the 40 Act allows mutual funds to invest in an index will fluctuate, much... ; s beat large-cap growth fund with $ 139 billion in and Christine, we 're to!, rapid recovery protocols and multimodal pain regimens to decrease postoperative pain our management! Replicate going forward to help me look for stocks that fit my ideal pattern Risk! Research processes: that 's a lot of time Windsong label Fidelity contra fund- ER!