Fidelity Contrafund Q2 2024 Review

FUND INFORMATION

Managers): William Danoff

Trade symbol: FCNTX

Start date: May 17, 1967

Size (in millions): $143,288.73

Morningstar Category: Big Growth Fund

The value of the fund’s domestic and foreign investments will change from day to day in response to many factors. Stock values fluctuate in response to individual company actions and general market and economic conditions. Investing in foreign securities involves greater risk than U.S. investments. You may make a profit or loss when you sell your shares.

Definitions and important information

The information contained in this document and its presentation is for informational and educational purposes only and does not constitute a recommendation to take any specific action or any action at all, nor an offer or solicitation to buy or sell any securities or services. It does not constitute investment advice. Fidelity does not provide legal or tax advice.

Before making any investment decisions, you should consult your own professional advisors and consider all of the specific facts and circumstances regarding your individual situation. Fidelity and its representatives may have a conflict of interest with respect to the products or services mentioned in these materials because they have a financial interest in and receive compensation, directly or indirectly, in connection with the management, distribution and/or servicing of those products or services, including Fidelity funds, certain third-party funds and products, and certain investment services.

CHARACTERISTICS

Earnings per share growth in final terms measures the growth in reported earnings per share over one-year and five-year periods.

Earnings per share growth (IBES 1 year forecast) measures the growth in reported earnings per share as estimated by Wall Street analysts.

Median Market Capitalization determines the median market capitalization of a portfolio or benchmark based on the market capitalization of the underlying securities.

Price to book value ratio (P/B) It is the ratio of a company’s current share price to its reported cumulative earnings and capital. Price/cash flow is the ratio of a company’s current share price to its trailing 12 months of cash flows per share.

Price to Earnings Ratio (P/E) (IBES 1-year forecast) This is the ratio of a company’s current stock price to Wall Street analysts’ earnings estimates.

Price to Earnings Ratio (P/E) This is the ratio of a company’s current share price to its earnings per share for the last 12 months.

Return on Equity (ROE) 5-year reporting period it is the ratio of the last five years of historical profitability of a company to its shareholders’ equity. Preferred shares are included in the net worth of any company.

Sales growth per share measures the increase in reported sales over a specified time period.

Weighted average market capitalization determines the market capitalization of the average equity share, determined by the amount invested in the portfolio or benchmark.

Weighted Median Market Capitalization determines the market capitalization of the median stock holding, based on the amount invested in the portfolio or benchmark.

IMPORTANT INFORMATION ABOUT THE FUND

The relative positioning data provided in this commentary is based on the Fund’s primary reference index (the “Index”) unless an additional reference index is provided to measure performance.

INDEXES

You cannot invest directly in an index. All indices represented are unmanaged. All indices include reinvestment of dividends and interest income unless otherwise stated.

The S&P 500 Index is a market capitalization-weighted index of 500 common stocks selected based on market size, liquidity, and industry group representation to reflect the performance of U.S. equities.

MARKET SEGMENT WEIGHTS

The market segment weightings are illustrative of examples of sectors or industries in which the fund may invest and may not be representative of the fund’s current or future investments. They should not be construed or used as a recommendation for any sector or industry.

RANKING INFORMATION

© 2024 Morningstar, Inc. All rights reserved. Morningstar information contained herein: (1) is the property of Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not guaranteed to be accurate, complete, or current. Neither Morningstar nor its content providers are liable for any damages or losses resulting from any use of this information. Fidelity does not verify Morningstar data, and to verify investment fund performance, you should consult the fund’s current prospectus for the latest information on applicable charges, fees, and expenses.

The % Morningstar Category Rank is the fund’s total percentage return ranking relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentage rank is 1, and the lowest (or least favorable) percentage rank is 100. The best-performing fund in a category will always receive a ranking of 1%. The % Morningstar Category Rank is based on total returns, which includes reinvested dividends and capital gains, if any, and excludes sales charges. Multiple share classes within a fund share a common portfolio but impose different expense structures.

RELATIVE WEIGHTS

Relative weights show the % of a fund’s assets in a given market segment, asset class or credit quality relative to the benchmark. A positive number indicates overweight, while a negative number indicates underweight. The fund’s benchmark is listed directly below the fund name in the performance summary.

3-YEAR RISK/RETURN STATISTICS

Beta is a measure of a fund’s volatility relative to its benchmark index. A beta greater (smaller) than 1 is more (less) volatile than the index.

Information coefficient measures a fund’s active rate of return (the fund’s average monthly return minus the benchmark’s average monthly return) relative to the volatility of its active returns.

R-squared measures how well a fund’s performance correlates with the performance of a benchmark index and shows how much of it can be explained by the performance of the overall market/index. RSquared ranges from 0, which indicates no correlation, to 1, which indicates perfect correlation. An R-Squared value of less than 0.5 indicates that annual alpha and beta are not reliable performance statistics.

Sharpe ratio is a measure of historical risk-adjusted performance. It is calculated by dividing the fund’s excess returns (the fund’s average annual return for a given period minus the three-month “risk-free” rate) by the standard deviation of the fund’s returns. The higher the ratio, the better the fund’s return per unit of risk. The three-month “risk-free” rate is the 90-day Treasury bill rate.

Standard deviation is a statistical measure of the dispersion of a fund’s returns over a specified period of time. Fidelity calculates standard deviations by comparing the fund’s monthly returns to the average monthly return over a 36-month period, then annually converts the number. Investors can examine the historical standard deviation in relation to historical returns to decide whether the fund’s volatility would be acceptable, given the returns it would have generated. A higher standard deviation indicates a wider dispersion of past returns, and therefore greater historical volatility. The standard deviation does not indicate how well the fund has actually performed, but merely the variability of its returns over time.

Traction error a divergence between the price performance of a position or portfolio and the price performance of a comparative index, resulting in an unexpected gain or loss.

Before investing in any mutual fund, please consider the investment objectives, risks, charges and expenses carefully. For this and other information, call or write Fidelity to obtain a free prospectus or, if available, a summary prospectus. Read it carefully before investing.

Past performance is not a guarantee of future results.

The views expressed are valid until the end of the period stated and do not necessarily reflect the views of Fidelity. Views may change at any time based on market or other conditions, and Fidelity disclaims any responsibility to update such views. These views should not be considered investment advice and, because investment decisions regarding a Fidelity fund are based on many factors, should not be considered an indication of trading intent on behalf of any Fidelity fund. The securities mentioned are not necessarily the shares in which the portfolio managers or FMR LLC have invested. References to specific securities of a company should not be construed as recommendations or investment advice. Diversification does not guarantee a profit or a loss.

S&P 500 is a registered service mark of Standard & Poor’s Financial Services LLC.

Other third party trademarks appearing in this document are the property of their respective owners.

All other marks mentioned herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.

Fidelity Brokerage Services LLC, member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917.

Fidelity Distributors Company LLC, 500 Salem Street, Smithfield, RI 02917.

Not insured by NCUA or NCUSIF. May lose value. Not guaranteed by credit union.

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