TEXT OF GRAPHIC [Morris Smith] vs. Lynch Peter Lynch's Magellan Fund had a return of 55.9% from June 30, 1986, to March 30, 1990 - vs. 41.8% for Fidelity's OTC Fund, managed by Morris Smith. But Smith wins when you compare each fund's results with the stock index that best represents each manager's segment. How a $100 investment would have fared:
That may be more of a handicap than Magellan's size is. At OTC Fund, Smith was limited to small-company stocks, and he had to find enough good ones to absorb all that money. Magellan is 18 timesthe size of OTC Fund, but Smith now has the whole universe of stocks to choose from. So it could be argued that once Smith gets comfortable with Magellan's size, he'll find it easier to run than OTC Fund.
EAR CUTLINE:SMITH: Following in Peter Lynch's famous footsteps. CUTLINE:Peter Lynch CUTLINE:Morris Smith
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