FSNGX was up nearly 19% year to date on June 23, but by August 8 it was down 13.2% for the year. The fund, which topped Dion’s Sector Momentum Tracker rankings table from April 18 to June 27, slid to tenth last week, after a month in which it fared worse (-7.9%) than 99% of all natural resource funds tracked by Morningstar.
Sector Momentum Tracker—one of Fidelity Independent Adviser’s three momentum-based publications—
“Natural gas prices typically soften in summer, when demand for the fuel for heating is negligible,”
In his profile of FSNGX, Dion cited weather, production and storage levels among the causes of the natural gas slide. “Obviously, this is a volatile fund, full of fits and starts,” Dion said. “Halfway through 2008, Fidelity Select Natural Gas was poised to deliver 40% or greater returns for the year, as it did in 2007, 2005 and 2004,” Dion added, “but the downturn in natural gas prices during the last few weeks made that questionable.”
While Dion believes that natural gas prices are the primary culprit in FSNGX’ downturn, he also places some of the onus on the fund’s manager—James McElligott: “McElligott’
Can FSNGX regain momentum in Dion’s rankings? Dion is not entirely unconvinced:
Despite these promising factors, Dion,—who is also the president of a money management firm (http://www.dionmm.com/
Top 10 Holdings*
Plains Exploration & Production
Canadian Natural Resources
Sector Momentum Tracker is a member of Fidelity Independent Adviser’s family of publications. With more than 70,000 subscribers in the United States and 29 other countries, Fidelity Independent Adviser publishes four monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.
Don Dion is the publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors Don’s commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. Dion is also president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Massachusetts, Dion Money Management manages more than $715 million in assets for clients in 49 states and 11 countries. http://www.dionmm.com/
Dion is currently offering Free Portfolio Reviews. “This market has been tough,” Dion said, “anyone who goes to http://www.dionmm.com/
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Fidelity Independent Adviser's newsletters offer a broad range of investors Don’s commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds