Why riding out volatility can pay off

Fidelity’s Sonu Kalra explains how he uses pullbacks to upgrade fund holdings for the long term.

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"Sometimes it's hard for me to take this perspective, but part of my long-term investment approach involves looking at a market pullback as an opportunity to upgrade fund holdings," says Sonu Kalra, portfolio manager of Fidelity® Blue Chip Growth Fund (FBGRX) since 2009.

When stock prices hit turbulence, Kalra looks to purchase names that fit his overall investment strategy—firms he believes can sustain above-average earnings over time—at discounted prices.

As of mid-to-late March, Kalra sees potential for more market volatility in the near term, as governments around the world scramble to contain the spread of the coronavirus. Lately, he's been looking to buy shares of companies with high-quality brands he thinks could regain sales momentum when coronavirus fears eventually abate. Many of these companies, especially in consumer services industries, are trading at steep discounts amid this volatility.

He's also attracted to companies in the midst of a strong product cycle or with a promising upcoming product cycle, which he believes could accelerate revenue growth and improve profitability.

Also, Kalra continues to invest a small percentage of the fund in private placements he believes could generate meaningful growth in coming years, even if the economy slows near term.

Learn more about this manager and his fund
Sonu Kalra is the portfolio manager of Fidelity® Blue Chip Growth Fund.

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Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

Past performance is no guarantee of future results.

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