The meme-stock craze that has emerged over the last year has drawn attention to the previously overlooked stocks long-favored by Fidelity stock picker Joel Tillinghast, according to a recent article in The Wall Street Journal.
The economic recovery and what the article describes as a “sharp market rally powered in part by legions of first-time traders” fueled an interest in meme-stocks—those that see sudden and dramatic surges thanks to social media hype. Tillinghast, who has been picking stocks at Fidelity for more than 30 years, describes the last 17 months: “Having survived it, you had daredevil traders who said, ‘You only live once,” adding, “It was very weird.”
In December of last year, Tillinghast saw $549 million of net new money enter his Fidelity Low-Priced Stock Fund, the first month since April 2016 that inflows exceeded withdrawals (he had been losing investors to index funds). The fund has again seen inflows between February and May of this year, the article reports, adding that total assets under management (which had dipped to $20 billion in March 2020) reached $33.7 billion as of earlier this month.
“I think people realize there are companies beyond big tech,” Tillinghast said. “The world doesn’t begin or end with Microsoft, Google and Apple.”