“I always prefer to invest in companies that are doing well right now,“ says Will Danoff, who manages the $139bn Fidelity Contrafund in the US, the largest active equity fund run by a single person. That’s why his portfolio is heavy in stocks that benefit from a world in which people work and study from home, he tells Bloomberg, rather than contrarian bets such as airlines and hotels that are only likely to recover when the pandemic is over.
Danoff’s biggest holdings are tech giants such as Amazon, Facebook and Microsoft. Many of these shares have already risen much further than anybody would have expected when Covid-19 first struck. “But if you say ‘would I rather own [a stock like Amazon] for the next ten years or not?’, I think it’s clearly a long-term buy.”
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