Newspaper article THE JOURNAL RECORD

Manager Targets IBM for Growth

Newspaper article THE JOURNAL RECORD

Manager Targets IBM for Growth

Article excerpt

BOSTON -- International Business Machines Corp. stock is a bargain, according to one of Fidelity Investments' top money managers.

George Vanderheiden, who oversees more than $18.9 billion in assets at Fidelity, said in a message delivered last week over the "Fidelity Advisor Fund Manager Hotline" that IBM shares are "particularly cheap," said brokers who listened to the hotline.

Vanderheiden's remarks are especially interesting because he's considered "one of Fidelity's best managers," said John Bonnanzio, editor of Fidelity Insight, an independent newsletter that tracks the nation's No. 1 fund group. "Vanderheiden has an excellent record," he said.

The $12 billion Advisor Growth Opportunities Fund, which he manages, ranks among the top 20 percent of growth stock funds for the past five years, according to Lipper Analytical Services Inc. Two other funds he manages, Destiny and Destiny II, beat the benchmark Standard & Poor's 500 index in recent years.

Vanderheiden wasn't available for comment.

Fidelity banned its money managers from making public comments about individual companies in January after a group of investors filed a lawsuit against Jeffrey Vinik, manager of its flagship Magellan Fund. The suit alleges that Vinik manipulated the price of Micron Technology Inc. stock by "touting" it as Magellan sold shares.

The hotline is only available to brokers who do business with Fidelity, the firm said. Any remarks made on the hotline are intended for the brokers' use only.

IBM has been a favorite of Vanderheiden's this year, according to reports published by Fidelity. It was the eighth-biggest holding of the $12 billion Advisor Growth Opportunities Fund as of Feb. 29, according to a monthly guide published by the firm.

It was also one of the fund's top 10 holdings in January.

Shares of IBM, the world's biggest computer company, has traded around 106. Since last Thursday, when Vanderheiden's hotline message appeared, the stock dropped about 1.6 percent.

In the message, Vanderheiden said IBM trades at less than 10 times estimated earnings of $11.30 a share for this year, according to brokers. …

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