Why We Upgraded This Fidelity Large-Growth Fund to Gold

Conviction in Fidelity OTC FOKFX manager Chris Lin and the large analyst team at his disposal led to a People Pillar rating upgrade to High that pushed the fund’s K6 shares to a Morningstar Medalist Rating of Gold from Silver.

The fund and Lin had a challenging first five months of 2025, but Lin demonstrated adaptability and a commitment to constant improvement by shifting tactics midyear, which resulted in a strong rebound from June through August. Lin manages more than $100 billion over several portfolios, which is a potential concern, but he leans heavily on Fidelity’s large stable of experienced managers and analysts. Lin’s combination of assertive, yet careful investment decisions distinguishes this strategy in the competitive large-growth Morningstar Category. His style is bold, rational, well-structured, and data-driven. He also has an extensive background with the tech sector, which is a plus given the importance of tech-related stocks in the large-growth universe.

Key Morningstar Metrics for Fidelity OTC

Morningstar Medalist Rating: Gold

Process Pillar: Above Average

People Pillar: High

Parent Pillar: Above Average

A Stable and Experienced Group

Increased confidence in Victory Short-Term Bond’s UISBX deep and experienced team drove a People Pillar upgrade to Above Average from Average, boosting its institutional shares’ Morningstar Medalist Rating to Bronze from Neutral.

All five members of the management team have guided this strategy since at least 2019; many of them have been with Victory since before the firm’s 2019 acquisition of USAA. Manager Brian Smith has led the strategy since 2013, and he works with comanagers Douglas Rollwitz, Jim Jackson, Kurt Daum, and Neal Graves. Longtime manager and the firm’s co-CIO John Spear stepped back from the fund before retiring in December 2024; the firm was prepared, having named Jackson co-CIO in 2023.

A similarly stable and experienced team of 14 analysts supports the managers. Many of them have spent nearly two decades at Victory and pick bonds for the strategy based on fundamentals and valuations, while the managers set overall risk levels and sector allocations. This team has a strong history of working together, and the fund has outperformed most category peers over its tenure.

Key Morningstar Metrics for Victory Short-Term Bond

Morningstar Medalist Rating: Bronze

Process Pillar: Above Average

People Pillar: Above Average

Parent Pillar: Average

An Effective Quantitative and Fundamental Mix

JPMorgan Europe Dynamic’s VEUVX use of strong proprietary models and risk management, portfolio construction, and decision-making tools drove a Process Pillar upgrade to Above Average from Average and lifted its R6 shares’ Medalist Rating from Bronze to Silver.

The team uses a data-driven system that looks for stocks with good value, strong fundamentals, and positive momentum, while avoiding hard-to-trade shares. This helps it spot promising opportunities and avoid potential losses. The team’s custom tools and practical approach are strengths. The team adjusts its focus depending on where it sees the best opportunities. It usually builds well-diversified portfolios, balancing different types of risks. The team trades often, mainly based on company earnings and news about individual stocks.

Key Morningstar Metrics for JPMorgan Europe Dynamic

Morningstar Medalist Rating: Silver

Process Pillar: Above Average

People Pillar: Above Average

Parent Pillar: Above Average