Boston, MA 06/03/2014 (wallstreetpr) – One of the leading internet media company Yahoo! Inc. (NASDAQ:YHOO) is not going through a good period, and the main reason is but the global financial turmoil. Recently one of the biggest mutual funds company Fidelity Investments cut its stake by 41% in YHOO’s stocks. The news was made public recently through a fund disclosure document.
Insights of the Issue:
According to Will Danoff, the portfolio manager of contraband himself said that it very clearly that he was very confident in Yahoo! Inc. (NASDAQ:YHOO). He made the news public at the time of results announcements of Q1 financial results, but soon he said,” Though I am quite confident about YHOO and its fund performance, but now I want to take the fund on newer heights and thus I want to look beyond tech industry.” His indication was towards the fluctuating performance of tech stocks and uncertainty on their future.
Please note that contrafund is up by 1.93% this year, but when it comes to S&P 500 index, it is still lagging behind by 4.97%. According to the fund manager of contrafund, on the basis of current market conditions, by the end of the current year, the fund will be able to match with the S&P 500 index performance.
When asked from Fidelity Investments, the spokesperson of the company refused to talk on the issue. The total fund value of contrafund is $108 billion. It owned 24.3 million worth of YHOO’s shares which accounted to more than 41% of tech giant’s market share. The fund sold around 5.3 million shares ofYahoo! Inc. (NASDAQ:YHOO) in the month of April.
If you keep a close eye on YHOO’s shares, you can see that the market value of the shares has reduced by 14% in the current year. The main reason behind the reduction in prices is global turmoil in the stock market. As the fund has redeemed its share, it will be great to see as how the tech giant performs in coming months.
