Fidelity Growth Strategies Fund Beats Midcap Growth Benchmark in Q1
Positioning in AI builders with reduced FICO risk drove returns.
Overview
- Fidelity Growth Strategies Fund returned -3.21% in Q1 2026, outperforming the Russell Midcap Growth Index’s -6.35% decline.
- Fidelity pointed to stock selection in industrials as investors in late February favored steadier, value-oriented names due to doubts about AI spending and conflicts in the Middle East.
- An off-benchmark stake in Coherent boosted results, supported by AI data-center demand, 21% year-over-year revenue growth to $1.8 billion, and S&P 500 inclusion on March 23.
- An overweight in Fair Isaac hurt performance after a late-2025 surge left the shares vulnerable on valuation, and the fund cut the position to finish Q1 as its No. 15 holding.
- Holdings tied to building AI-ready facilities, including MasTec, were notable contributors, and the team trimmed winners to keep position sizes in check.