Harry W. Lange was named portfolio manager of the $52.5 billion Fidelity Magellan Fund, replacing Robert E. Stansky, who will retire, according to a news release from the firm. Fergus Shiel will replace Mr. Lange as manager of the $7.1 billion Fidelity Capital Appreciation Fund; Mr. Shiel will continue to manage two smaller funds he currently heads. James Harmon will replace Mr. Lange as manager of the $3.1 billion Fidelity Advisor Small Cap Fund. Rich Thompson will replace Mr. Harmon as manager of the $1.6 billion Fidelity Small Cap Independence Fund. Mr. Thompson was interim co-manager of the Fidelity Small Cap Stock Fund.
In a conference call today to discuss a spate of top-level management changes, both Mr. Stansky and Stephen P. Jonas, executive director of Fidelity Management and Research, denied that Mr. Stansky was being forced out as a result of subpar returns for the flagship Magellan Fund during the portfolio manager's nine-year tenure. According to data from Chicago-based Morningstar, the fund had an annualized return of -2.85% over the five years through Oct. 28, 1.67 percentage points below the S&P 500 benchmark index for the same period. Mr. Stansky said after taking a break, he wouldn't rule out working at Fidelity again in some capacity, and Mr. Jonas said he hoped that would happen.
In addition, Timothy M. Cohen was named portfolio manager of the $31.3 billion Fidelity Growth & Income Portfolio, replacing Steven Kaye. Mr. Kaye will continue to manage institutional accounts and is considering "a number of options within Fidelity," according to the release. Victor Thay will replace Mr. Kaye as manager of the $3.3 billion Fidelity Export and Multinational Fund.