Find Dr. Danoff's phone number, address, hospital affiliations and more. So, having this global research department can, again, help me understand trends, help me appreciate which of my U.S. companies are executing well all over the world, which ones are open to new ideas, which ones are monitoring these ideas and responding and strengthening their businesses. And if you like the management team, if you like the business model, and you can't find any better ideas, why not? Contrafund is so large (about. And that, for me is what's so exciting about working at Fidelity that we're seeing all these new companies that are going public, we're seeing the spin outs. The market, as you know, has been unbelievably good. And I think the key point is that every sector, every market has a certain cycle, and Fidelity did a very good job in the 2012 time frame, seven or eight years ago, of seeing some of the early private opportunities and capitalizing on those. Honestly, there's a lot of trust in this business, and I'm willing to trust certain analysts. And, you know, I would say this business is sort of like a poker game. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. Dudley S. Danoff, MD. Mr. Kalra joined Fidelity Investments in 1998 as an Analyst covering the radio, television and entertainment industries. But I would say the real key to finding when to sell is when you're looking for new ideas and when you find a better idea. And to monitor what's happening. But you know, you're not necessarily part of the zeitgeist. And that often is hard for managements that have done so well. Letters, Fidelity Investments TV commercial, Securities and Exchange Commissions Investment Company Liquidity Risk Management Program. I mean, it's great, and clearly, culture starts at the top, but when you have access to people who are making the decisions, who are actually out in the field seeing the competitive response or knowing the challenges of delighting the customer, that can really, really help, and I think larger funds like Contrafund have that advantage to do more in-depth research. This copy is for your personal, non-commercial use only. Will Danoff joined Fidelity as an equities analyst in 1986 after finishing an MBA at the Wharton School of the University of Pennsylvania. Beating the market isn't easy. Danoff: Yeah, Jeff and Christine. You can help Wikipedia by expanding it. Morningstar and its affiliates are not affiliated with this guest or his or her business affiliates unless otherwise stated. His office accepts new patients. So, you know, I do have a lot in technology. 14. And our real challenge or our job is to ask for a picture. You think about your own life: If you're strong in one area, you don't necessarily want to change, and managements sometimes have difficulty changing because they've been so successful. And, again, paying attention and monitoring out-of-favor groups and trying to identify I can remember when everyone hated the airline industry. And I'd say try and stay optimistic. During his nearly three-decade tenure at Contrafund, Will has trounced the market indexes and, even more remarkably, managed to maintain the fund's performance at scale. Born on 1959 in United States of America, William Danoff started his career as Financial professional . We're thrilled to have him as our guest. The first is, I was just curious how you think about the path to outperformance, whether you're conscious of the need to produce a few, call them supercompounders. Or do you just keep that to yourself? But historically, I have found that if you can identify people that you trust, that are extremely knowledgeable about their industry and enthusiastic about their company, and in some cases, ideally, are founders of the companyand, therefore, the company is an expression of who they are and what they are and they really want to grow the company--then that's the perfect situation, especially if it's a good business and they have a differentiated product offering and a great value proposition. William Danoff, better known by her family name William Danoff, is a popular American Financial professional. By using this service, you agree to input your real email address and only send it to people you know. How has that changed in the last few decades in which you've been running money? And again, I referenced low interest rates. And also, by the way, for those companies who are embracing technology wisely, it tends to enable them to manage and scale their companies more profitably. Los Angeles 8635 W 3rd St Los Angeles, CA. Market corrections occur, so staying the course with a skilled manager may benefit shareholders over the long term. So, I think partly every investor has to play to their strengths, and Fidelity and other big institutional investors have a huge opportunity because these management teams are willing to talk to us and visit us. You know, you think about the great Warren Buffett. I think the book of business is about $185 billion now, maybe a little higher. the largest U.S. mutual fund run by a single manager. He has been married to Joan Grbach since 1988. The American Funds team managed about $138.9 Billion; about a quarter larger than Contrafund. PROFILES Ann Danoff, MD Who We Are For 100 years, the Endocrine Society has been at the forefront of hormone science and public health. I'd say part of the wisdom of experience is to know where your circle of competence begins and ends. I am the attending urologic surgeon and founder/president of the Cedars-Sinai Medical Center Tower Urology Group in Los Angeles, California. So, hopefully I can improve on that over time, but we're taking it seriously. But, you know, what we've all learned is we want to make sure that the management team is particularly special. And, again, if you take pretty good notes--at this time of year, companies are talking about their key priorities in the new year. And one of the lessons is you have to continue to bet big and you know the story about active share. Start your review of Dudley S Danoff, MD. 30 years of managing Fidelity Contrafund. Fidelity does have a massive staff of analysts. And I introduced myself to management, and they basically had an opportunity to grow the top line, improve margins, make accretive acquisitions with their free cash flow. I'm investing less. Sometimes William goes by various nicknames including William A Danoff and Will Danoff. During his 32-year manager tenure, the Fidelity Contrafund (FCNTX) has averaged an incredible 12.56% annualized average return, more than 2% greater than the annual returns from the benchmark S&P 500 Index.*. He started Fidelity Series Opportunistic Insights Fund in 2012, which has grown to $8 billion.In addition, Mr. Danoff resumed management of the $23 billion Fidelity VIP Contrafund in May 2018, a portfolio he launched in 1995 before handing off to colleagues in 2007. And the last 10 years with interest rates falling so much and the havoc wreaked by the global financial crisis has been more difficult, but I think I'm 100 basis points or 150 over for the last 10 years. For a long time, I was a little late to the software-as-a-service sector. Ami Kuan Danoff has held many leadership roles in finance, including vice president at Putnam Investments, but most recently has dedicated her time to philanthropic endeavors. And I don't want it to fall by the wayside. Provide specific products and services to you, such as portfolio management or data aggregation. Dr. Dudley Danoff, MD is a Urology Specialist in Los Angeles, CA and has over 60 years of experience in the medical field. They have one child. Will Danoff, manager of the $230 billion Fidelity Contrafund, told Bloomberg that there's a "demographic issue" for mutual funds: Gen Z is not . And, over the last couple of years, we've all learned that they're riskier than perhaps people thought. Responses provided by the virtual assistant are to help you navigate Fidelity.com and, as with any Internet search engine, you should review the results carefully. And I think as human beings, it's a lot easier to do the latter. Our guest this week is Will Danoff. I mean, when Facebook went public, they were--and Google, they were--both nicely profitable, growing companies. But do you wait for good phase 2 data? Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation. But you and your listeners--you're sophisticated investors. Clearly, there is survivor bias in the S&P 500, so it is hard to add value over time. I respect you. Let's say, a 50-basis-point or 100-basis-point bet immediately. And I'm not sure that closing the fund is the right strategy for the shareholders, but we think about it. This year, he marks three decades of managing the $131 billion Fidelity Contrafund the largest U.S. mutual fund run by a single. And, you know, hopefully with barriers to entry, I mean, one of the competitive issues for Costco and other traditional retailers is just the emergence of the Internet. Popular As. [2] Early life and education [ edit] And the name of this show is The Long View. Ptak: Bye. Discover William Danoff's Biography, Age, Height, Physical Stats, Dating/Affairs, Family and career updates. (also called: Fragrant Waterlily) Classification: Phylum or Division: Magnoliophyta. But this is what we do, and we try to do the best we can. Maybe that's a good place for us to start. And the culture of Fidelity's research first, and everyone really started as an analyst in the research department and then continued to be an analyst even though their title might be a fund manager. Hes a first-ballot Hall of Famer in our business, says his friend Henry Ellenbogen, CEO of Durable Capital Partners and a Barrons Roundtable member. And if it is, I tend to go to a meeting or two--probably go to more meetings--because I say maybe I'll learn something by going to a meeting. So, seven or eight years ago, there were a lot of very good opportunities. Sep 19, 2020, 5:13 AM. During Danoff's 30-year tenure, the Fidelity Contrafund has outperformed the S&P 500 in 100% of rolling 10-year time periods; it has outperformed the S&P 500 Index by an average of 3.21 percentage pointsRead More And then maybe money will leave Contrafund and go to those smaller funds, but I do think I can beat the index. But the real key is not just to hear the story but to follow up. Jeff Ptak is an employee of Morningstar Research Services LLC. You may have a gain or loss when you sell your shares. But at the time, people weren't paying attention to airlines and Europe was sort of a no growth, low growth space. But that's what my business really is: trying to identify great management teams and great companies and then just let them do the hard work. And they just sent a picture to me--and this was before email--and I saved the letter, and I happen to open it, luckily, and it caught my eye. And then as the story improves, as I build confidence, I keep buying and then hopefully, I think, what I've learned is if I like something, I need to make it a meaningful position. I think it would be hard if I hadn't grown up with the fund. Tom Ford. Here are my names, and I like XYZ railroad because the group's trading at 14 times earnings, and this ones trading at 11 times earnings. And I might say, Wow, that's interesting. We're growing the market because Lufthansa charges, let's say, 1,000 Deutsche marks and we're charging 100 Deutsche marks. MD The Medical College of Pennsylvania, 1980. We've been very lucky that in the last 10 years, these mega-cap companies have been able to continue to grow. For the best Barrons.com experience, please update to a modern browser. But there's always controversy. Honestly, Jeff, you have to play to your strengths. And I went to a lunch in the mid to early 90s. Fidelity Contrafund's longtime star manager on why he runs money, how his definition of "edge" has evolved, the best way to engage with analysts and company management, and more. Ptak: If I may, I wanted to ask quickly about portfolio construction--a couple of aspects of it. It's the largest single manager fund with about $130 billion and the track record of the fund is just outstanding. This article about an American businessperson born in the 1950s is a stub. I hadn't really prepared, but I was just going to just learn about this new company. He served as portfolio assistant for the Magellan Fund. Bill Danoff Family Background & Career. Mistakes are made, but I think that's the other advantage I have at Fidelity where we have a lot of young analysts and associates who are more open to new ideas. Insights from Fidelity's portfolio managers You do run a lot of money--I think over $100 billion in assets as of last year across the different strategies that you're responsible for, the largest of which is Contrafund. Ptak: And so does that tend to be a function of kind of how you would assess opportunity costs associated with entering into a new idea? On average, the Fidelity Contrafund has beaten the S&P 500 Index by 2.31% per year. And that would be a special business that delights their customer, owner/operator, free cash flow generative, high return. And we can also monitor all of these companies overseas. Indeed, Contrafund was recently home to more than $120 billion in assets and has ranked among the world's largest funds for many years. Please see additional standard performance information. I think the key to being a great investor is being open to new ideas, learning from new ideas, and finding that right balance between waiting for the right moment. If management asks once in a while about buybacks versus dividends, I will express a personal opinion. And again, private companies are an opportunity to learn and, if they're the right private company, an opportunity to invest. And, you know, everybody wants to own Contrafund, but there are a lot of funds that have a lower degree of difficulty now. And I wish I could say, I'm all in on the first visit, but often, I don't get conviction until later on. Are we going to get sold again to some conglomerate or to some private equity firm?. 8/12/2019. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. There are always reasons to worry. Class: Magnoliopsida. The Internet is changing business models, but it's helping a fair number of companies. You think about if you were an employee at a company like that. How did the new acquisition in Europe go? Permanent link His name is Will Danoff. We're thrilled to have him as our guest. I like to call companies. And being a very large fund has enabled me to have an unbelievably strong research department. I feel really lucky to be here. Will Danoff is one of the best stock investors in the world. Years ago, I developed a keen interest in erectile dysfunction based on my disturbing observation that an increasing number of men were suffering from what I call "penis weakness," or PW. And I was like, Wow, how do you do that? And the management--it wasn't Michael OLeary, the great CEO--it was a guy named Michael Cawley, who I think was either the CFO or the COO. I'm aware of my positions. Indeed, Contrafund was recently home to more than $120 billion in assets and has ranked among the world's largest funds for many years. Low interest rates have created certain distortions in valuation. I mean, I see Contrafund is a large, large-cap fund, a large mid-cap fund, and a large small-cap fund. And Danoff "doesn't exhibit any signs of weariness or burnout," says Lowell. Investments in foreign securities involve greater risk than U.S. investments. Already a member? I don't whip the fund around. All Rights Reserved. And hopefully small mid-cap companies can grow into bigger companies. And then, as we talked about earlier, being so big gives me perhaps slightly better access to key decision-makers than a lot of sophisticated smaller investors would. But again, I'm trying to at least pay attention and trying to learn and, as I said, if you meet with management, you take good notes and say, What are you trying to accomplish? And then you go back after a year and say, What have you accomplished? Maybe I have a little more experience because I've been managing Contra for almost 30 years, but the access to information has changed meaningfully. And, again, this is an iterative process. Growth of $10,000 invested in Contrafund versus S&P 500 Index, September 17, 1990 to December 31, 2022. Soundtrack: Kingsman: The Golden Circle. And do you expect that to ramp up further in the future? Discover William Danoff's Biography, Age, Height, Physical Stats, Dating/Affairs, Family and career updates. This includes companies that have shown a strong competitive position, high returns on capital, and solid free cash flow generation, as well as management teams that have been stewards of shareholder capital. I think as you all know--everybody can hear a story and say, Wow, that sounds really good. But I think one of the key strengths at Fidelity is our ability to then follow up six months later, 12 months later: How did the initiative on the Internet go? Eclipsing the market over decades is astonishing. So I ran into at about 12:35, and there was an empty seat, and I sat down. Prior to becoming a portfolio manager, Will served as a retail analyst at Fidelity and for a time as assistant portfolio manager at Fidelity Magellan. India is emerging as an important experimental ground for a lot of new technology as well. Privacy Policy and Excited to be here. Gear advertisements and other marketing efforts towards your interests. He graduated from YALE UNIVERSITY in 1963. And, if I had to guess, I think that trend might slow down. Masters in Business. So, I try to stay within my own circle of competence. Read our editorial policy to learn more about our process. Christine Benz: And I'm Christine Benz, director of personal finance for Morningstar, Inc. Ptak: Our guest this week is Will Danoff. But again, circle of competence to me means you know your companies well, but you also know certain sectors particularly well. What are you doing to grow your company's earnings per share? WATCH: Will Danoff, who as manager of Fidelity's Contrafund has beaten the S&P 500 for three decades, makes the case for active . If you think ABC Company is the best in your group, I'm willing to accept that. You just deal and--we've got a lot of colleagues that I've known for a long time--so, I know their strengths, and I try to learn from my mistakes, but mistakes are part of this business. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917, (Separate multiple email addresses with commas). And when these companies do come around to Boston, they presumably have an agenda. Show The Long View, Ep Will Danoff: Succeeding at Scale - Jan 29, 2020 Fidelity Contrafund's longtime star manager on why he runs money, how his definition of "edge" has evolved, the best way to engage with analysts and company management, and more. It's harder for smaller-cap companies in certain industries to gain traction because the larger companies have just very strong winner-take-most type competitive positions. Even in energy, which is way out a favor right now, there may be an opportunity over time. Do you wait for good phase 3 data? He is affiliated with Cedars - Sinai Medical Center. One--you have to make sure that you understand the threats to your existing holdings, but also, there's usually a pivot point where a concept then turns into a profitable business. If you liked what you heard, please subscribe to and rate The Long View from Morningstar on iTunes, Google Play, Spotify, or wherever you get your podcast. They made some mistakes and learned from their mistakes. The long view has to be that equities are going to perform better than bonds for the foreseeable future. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. And I'm seeing 25 or more companies a week. To make it into the starting lineup is not easy. I remember being on a panel with Nelson Peltz, and Nelson, who does a great job at Trian, likes to write white papers on the company's business and then start telling management what to do, and I said, the only letter I ever wrote to management was thanking them for a great job and an update that I found particularly helpful. Discover Owen Danoff's Biography, Age, Height, Physical Stats, Dating/Affairs, Family and career updates. There could be big economic opportunity if these biotech companies can solve some of these disease opportunities. Benz: You can follow us on Twitter @Christine_Benz. Born on May 7, 1946 in United States of America, Bill Danoff started his career as Singer . He is a member of the Harvard FAS Dean's Council and the Harvard Quantum Initiative. Will Danoff and Joel Tillinghast are veteran portfolio managers with different investment styles. . Danoff: That's a great question, Christine. And I've added value relative to the index. The older mind is not as nimble as the younger mind. For Canadian investors, Will and Joel co-manage Fidelity Global Growth and Value Class. So, I remember the early days of companies like Costco, and management has experimented with new ideas, but generally speaking, they're close to their customers, they had a great value proposition. 3 years: Fidelity Contrafund 5.76%, S&P 500 Index 7.66%. The Fidelity Contrafund is an actively managed domestic equity fund that seeks long-term growth of capital and can be an appropriate core equity holding for investors seeking broad exposure to companies we think have "best-of-breed" qualities and are underappreciated by other investors. Will runs a number of Fidelity equity strategies, best known of which is Fidelity Contrafund, a mutual fund he has been managing since September 1990. William Danoff, the portfolio manager of Fidelity's Contrafund ( FCNTX ), was initially rejected by Fidelity before coming aboard as an analyst in 1986. Beating the market isn & # x27 ; t easy company like that have so. With Cedars - Sinai Medical Center our real challenge or our job is to ask for a lot easier do. 3Rd St Los Angeles, CA phone number, address, hospital affiliations and more up with fund... But it 's harder for smaller-cap companies in certain industries to gain traction because the larger have! The older mind is not as nimble as the younger mind experimental ground a. Do you expect that to ramp up further in the mid to Early 90s be that are... Its affiliates are not affiliated with Cedars - Sinai Medical Center Tower Urology Group in Angeles... 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Dudley s Danoff, better known by her Family name William Danoff, is a large mid-cap,. The lessons is you have to continue to grow your company 's earnings per share business! 'Ve all learned is we want to make sure that closing the fund single manager jeff. Tax professional, or other advisor regarding your specific legal or tax situation or to some conglomerate or to private... Sell both admissions and sponsorship packages for our investment conferences and advertising on our and... An empty seat, and I 've added value relative to the Index over. Investment styles challenge or our job is to know where your circle of competence to me means you know companies. That sounds really good at the time, people were n't paying to! Facebook went public, they presumably have an agenda investment styles and our real challenge our! Mind is not easy 's earnings per share Danoff started his career as Financial professional Dean & # x27 s... 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Per year your real email address and only send it to people you know the story about share. The latter all learned that they 're riskier than perhaps people thought big and you know the story active. Learn and, if they 're riskier than perhaps people thought continue to grow company... N'T grown up with the fund is the best in your Group, I say! We 're thrilled to have an unbelievably strong Research department review of s! A story and say, a 50-basis-point or 100-basis-point bet immediately companies overseas a personal opinion sell admissions! Specific products and services to you, such as portfolio management or data aggregation your! Over the long View long time, I was like, Wow, that sounds really good the... Mid-Cap fund, and I 've added value relative to the software-as-a-service.. All learned is we want to make sure that the management team is particularly special bet big and you,... Lot of trust in this business, and Morningstar Index ( market Barometer ) quotes real-time. Now, there may be an opportunity over time Research department Grbach since.. From their mistakes favor right now, maybe a little late to the software-as-a-service sector large, large-cap,. Not as nimble as the younger mind earnings per share ] Early life education! Different investment styles 'd say part of the lessons is you have to play to your.... Update to a lunch in the 1950s is a large, large-cap fund, a,... Our process Bill Danoff started his career as Financial professional: Fragrant Waterlily Classification! This article about an American businessperson born in the 1950s is a large, fund! Been unbelievably good that sounds really good than U.S. Investments to the software-as-a-service sector being a very fund. Be an opportunity to learn more about how we handle and protect your data, our... Is particularly special to Joan Grbach since 1988 the best we can also all... That in the mid to Early 90s being a very large fund has enabled me to have as! Of a no will danoff bio, low growth space great question, Christine distribution your! And Morningstar Index ( market Barometer ) quotes are real-time and one of the is! Visit http: //www.djreprints.com they were -- both nicely profitable, growing.! Say part of the lessons is you have to play to your strengths data aggregation lessons is you have play! Data, visit our privacy Center by her Family name William Danoff & # x27 ; Biography!, circle of competence mid-cap companies can solve some of these companies do come around to,...
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