In dollars-and-cents testimony to [Peter S. Lynch]'s reputation, Wall Street traders today marked down prices of stocks of many small companies held by Magellan. They did so in the expectation that the fund may have to sell shares in those firms to raise money to pay back investors who desert Magellan now that the master is leaving.
Lynch expressed irritation over the long-standing criticism that Magellan has grown too big, and said he remained as fund manager for as long as he did to prove wrong the skeptics who said that investors should shun Magellan for smaller, more flexible funds.
Even if Lynch finds one of his legendary "10-baggers," or stocks that rise to 10 times their original price, he is likely to be able to devote such a small chunk of Magellan's assets to that company that the overall impact on Magellan's portfolio will be relatively small.
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