Fidelity Contrafund cuts Yahoo stake by 41% this year
BOSTON: Fidelity Investments Contrafund, the largest mutual fund
investor in Yahoo Inc, cut its stake in the internet media company by
41% during the first four months of 2014, according to the fund's latest
disclosure.
Contrafund portfolio manager Will Danoff had
expressed confidence in Yahoo's management team at the end of the first
quarter, but told Reuters in an exclusive interview in April he has been
looking beyond tech companies to boost the fund's performance.
Contrafund is up 1.93% this year, lagging the 4.97% return on the
S&P 500 Index.
Fidelity was not available to comment.
The $108 billion Contrafund owned 24.3 million Yahoo shares at the end
of April, down from 41.1 million shares at the end of 2013. In April,
the fund sold about 5.3 million shares in Yahoo, an 18 percent reduction
of its stake, according to Contrafund's latest disclosure.
Yahoo shares are down 14% this year.
The shares ranged in value during April from a high of $36.98 to a low
of $32.15. The shares on Monday near midday were trading at $34.75.
Yahoo's most valuable asset is its 23% stake in Chinese e-commerce
giant Alibaba Group Holding Ltd, whose upcoming initial public offering
could raise more than $15 billion, and could potentially top the $16
billion pulled in by Facebook Inc when it listed in 2012.
The
bulk of the proceeds will go to Yahoo, which bought a 40% stake in
Alibaba in 2005 for $1 billion and which must sell more than a third of
its current 22.6% stake through the IPO.
Analysts have noted
that Yahoo's stake in Alibaba is potentially more valuable than Yahoo's
current market capitalization. Alibaba's value has been pegged at more
than $160 billion, which puts the value of Yahoo's stake at about $37
billion. Yahoo current has a market cap of $35 billion.
At the
end of the first quarter, Danoff said he remained overweighted in Yahoo
relative to the S&P 500 index "due to our confidence in management's
ability to stabilize and grow the core business."
At the end of
April, even with the latest round of selling, Yahoo accounted for 0.82%
of Contrafund's holdings. Yahoo makes up 0.19% of the S&P 500
Index.
The mutual fund's biggest stake is in Google Inc, a Yahoo
rival. Contrafund owned about $7.4 billion worth of the Google stock at
the end of April, making up nearly 7% of its total holdings.
BOSTON: Fidelity Investments Contrafund, the largest mutual fund investor in Yahoo Inc, cut its stake in the internet media company by 41% during the first four months of 2014, according to the fund's latest disclosure.
Contrafund portfolio manager Will Danoff had expressed confidence in Yahoo's management team at the end of the first quarter, but told Reuters in an exclusive interview in April he has been looking beyond tech companies to boost the fund's performance. Contrafund is up 1.93% this year, lagging the 4.97% return on the S&P 500 Index.
Fidelity was not available to comment.
The $108 billion Contrafund owned 24.3 million Yahoo shares at the end of April, down from 41.1 million shares at the end of 2013. In April, the fund sold about 5.3 million shares in Yahoo, an 18 percent reduction of its stake, according to Contrafund's latest disclosure.
Yahoo shares are down 14% this year.
The shares ranged in value during April from a high of $36.98 to a low of $32.15. The shares on Monday near midday were trading at $34.75.
Yahoo's most valuable asset is its 23% stake in Chinese e-commerce giant Alibaba Group Holding Ltd, whose upcoming initial public offering could raise more than $15 billion, and could potentially top the $16 billion pulled in by Facebook Inc when it listed in 2012.
The bulk of the proceeds will go to Yahoo, which bought a 40% stake in Alibaba in 2005 for $1 billion and which must sell more than a third of its current 22.6% stake through the IPO.
Analysts have noted that Yahoo's stake in Alibaba is potentially more valuable than Yahoo's current market capitalization. Alibaba's value has been pegged at more than $160 billion, which puts the value of Yahoo's stake at about $37 billion. Yahoo current has a market cap of $35 billion.
At the end of the first quarter, Danoff said he remained overweighted in Yahoo relative to the S&P 500 index "due to our confidence in management's ability to stabilize and grow the core business."
At the end of April, even with the latest round of selling, Yahoo accounted for 0.82% of Contrafund's holdings. Yahoo makes up 0.19% of the S&P 500 Index.
The mutual fund's biggest stake is in Google Inc, a Yahoo rival. Contrafund owned about $7.4 billion worth of the Google stock at the end of April, making up nearly 7% of its total holdings.
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