A new generation of PMs is turning around Fidelity's [profile] value funds. So contends Morningstar analysts in a piece explains how the mutual-funds giant, best known for its suite of growth funds, is taking steps to put its value funds back on track.

With almost all its value funds trailing its rivals over the last five- and ten-year periods, Fidelity's top brass has finally taken the reins from longtime underperforming fund managers like Stephen Petersen and Bruce Dirks.

These managers, according to the piece, adopted overly conservative strategies, sticking close to benchmarks, and were left in charge for years despite disappointing returns.

Their successors, like Michael Chren, who heads the Fidelity Blue Chip Value Fund, and Jim Morrow, of Fidelity-Equity Income, have been given more independence.

The results are't in yet, but Morningstar analysts advise "cautious optimism". 

Edited by: Chris Cumming


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