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Fundranker Blog—Health Care Overweighting

Health Care Overweighting

Fundranker’s Top Eight Model Portfolio significantly increased its exposure to the health care sector over the last three months. We purchased Medical Delivery (FSHCX) in April, Health Care (FSPHX), Pharmaceuticals (FPHAX), and Biotechnology (FBIOX) in May, and Medical Equipment & Systems (FSMEX) in June. Fundranker now holds all five of Fidelity’s health care Select funds, and they account for over half of our Top Eight Model Portfolio.

While all 39 of Fidelity’s Select funds have lost ground in June, only three of three of them performed better than all five of our health care funds in month-to-date returns through June 21. Also through June 21, our five health care funds led 31 of the other Select funds in quarter-to-date returns and all of the other Select funds in 2011 year-to-date returns. It is easy to see why they have moved up into Fundranker’s Top Eight Model Portfolio.

So how will this overweighting play out in coming months? As of June 21, all five health care funds remain in the Top Eight and have a good chance of carrying through to July. While our politicians argue endlessly over how and even whether the Affordable Care Act, passed and signed into law over a year ago, should be implemented, it seems that the market is placing a vote of confidence in the outcome. We look for these funds to perform well for Fundranker.

Posted 6/21/11 10:10pm ET in Fundranker