"Some of the optimism for companies with technology that helps people work from home is bound to fade, but I think the trend of remote working will be with us for years to come," says Dan Kelley, portfolio manager of Fidelity® Founders Fund (FIFNX), a diversified domestic equity strategy focused on the entrepreneurial spirit of founder-led companies.
Kelley believes the coronavirus pandemic has accelerated several digital trends; it's increased the volume of e-commerce deliveries, for instance. And one of those trends is toward hosting meetings remotely, instead of sending teams of people on airplanes.
New 5G (fifth generation) wireless technology also could aid digitization and remote meetings, Kelley says, by delivering faster transmission speeds, greater reliability, and more connectivity. "The fund is exposed to these digital trends, given its focus on founder-involved companies, which tend to be on the forefront of innovation," he says.
Capitalizing on the work-from-home theme has resulted in the fund's sizable overweighting in information technology, especially among software & services firms. Notable holdings as of May 31 included Microsoft (MSFT), a leader in cloud computing, and Zoom Video Communications (ZM), a non-benchmark position.
Fidelity® Founders Fund held securities mentioned in this article on May 31, 2020. As of this date, these companies accounted for the following percentages of fund assets: Microsoft, 6.70%; Zoom Video Communications, 0.90%; Amazon.com, 6.48%; Alibaba Group Holding, 1.77%; JD.com, 0.76%; and MercadoLibre, 0.71%.
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