Unlocking Mid-Cap Potential: A Quarter of Strategic Growth

Quarterly Performance Highlights: A Strong Finish to 2025

In the final three months of 2025, the Retail Class shares of the Fidelity Stock Selector Mid Cap Fund delivered an impressive return of 3.23%. This significantly surpassed the 1.64% gain recorded by its benchmark, the S&P MidCap 400 Index, underscoring the fund's effective investment strategy.

Key Contributors to Outperformance: Strategic Stock Selection and Market Trends

The fund's strong performance was largely driven by astute stock picking, particularly within the technology sector. An overweight position in Coherent, a leading technology firm, emerged as a top individual contributor. This success was fueled by a surge in artificial intelligence infrastructure investments and robust demand for Coherent's products. Furthermore, strategic allocations to companies outside the benchmark, such as Exact Sciences and Western Digital, also played a crucial role in enhancing returns.

Investment Philosophy: Focusing on Quality and Growth Drivers

The co-managers of the fund continue to prioritize investments in high-quality businesses. Their selection criteria emphasize companies with strong market positions, unique growth catalysts, or those poised for cyclical recovery. This disciplined approach ensures that the portfolio is well-positioned to capitalize on evolving market dynamics.

Sector Allocation and Risk Management: A Balanced Approach

Consistent with its investment strategy, the fund maintained a broadly sector-neutral stance throughout the period. Its sector weightings remained closely aligned with the benchmark, reflecting a balanced approach to risk management. The primary focus for generating value is through meticulous stock and industry selection, rather than significant sector deviations.