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PORTFOLIO MANAGER Q&A | AS OF MAY 31, 2018
Fidelity® Growth Company
Fund
Key Takeaways MARKET RECAP
• For the semiannual reporting period ending May 31, 2018, the fund's The U.S. bellwether S&P 500® index
Retail Class shares gained 12.18%, well ahead of the 7.21% advance of its returned 3.16% for the six months ending
benchmark, the Russell 3000® Growth Index. May 31, 2018, amid a resurgence of
volatility in stocks that challenged the
• The fund's outperformance of the benchmark the past six months was multiyear bull market. The steady growth
largely due to favorable positioning in information technology and seen throughout 2017 extended into the
consumer discretionary. new year, as investors remained upbeat
on hopes of continued strong economic
• Representing 64% of fund assets, on average, this period, these two and earnings growth. Stocks surged
sectors led the benchmark amid a pro-growth rally. 5.73% in January alone. February was a
decidedly different story, though, as
volatility spiked amid concern that rising
• Within tech, chipmaker Nvidia was the fund's largest holding and by far
inflation would prompt the U.S. Federal
the biggest individual contributor versus the benchmark, as a sizable
Reserve to pick up the pace of interest
overweighting gained 26% and contributed 1 percentage point to relative
rate hikes. The index returned -3.69% for
performance.
the month, its first negative result since
October 2016, and lost further ground in
• From consumer discretionary, an overweighting in longtime fund holding
March on fear of a global trade war. The
lululemon athletica was a notable positive this period.
market stabilized in April and ended the
period with a solid gain in May. From a
• Security selection within health care also helped, but several notable style and market-cap perspective, growth
individual detractors came from the sector's pharmaceuticals, extended its lead over value, while
biotechnology & life sciences segment. Among these were Alnylam smaller stocks reigned. By sector,
Pharmaceuticals, Exelixis and Acadia Pharmaceuticals. information technology gained about
11%, boosted by strong earnings growth
• Portfolio Manager Steve Wymer says he is being selective in the from several major index constituents.
investments he chooses, given the later stage of the economic cycle and Consumer discretionary (+10%) also
recent risks, such as a potential global trade war. He is considering stood out, primarily driven by retailers
increasing the average market capitalization of the fund's holdings to help (+25%). Energy rose 11% amid higher oil
manage risk. prices. Conversely, notable laggards
included some defensive groups –
• On May 31, Steve is particularly interested in stocks of companies that consumer staples (-11%), utilities (-8%),
could benefit from increased consumer and/or corporate spending via telecommunication services (-5%) and
recent tax cuts. One example is software & services firms offering product real estate (-4%) – that struggled amid a
and services that could help corporations improve. general preference for risk. Financials,
health care and materials fared a bit
better but each still lost modest ground.
Not FDIC Insured • May Lose Value • No Bank GuaranteePORTFOLIO MANAGER Q&A | AS OF MAY 31, 2018
Q&A
An interview with Portfolio Manager
Steven Wymer
Steven Wymer Q: Steve, how did the fund perform for the six
Portfolio Manager months ending May 31, 2018
The fund's Retail Class shares gained 12.18%, well ahead of the
Fund Facts 7.21% advance of the benchmark Russell 3000® Growth Index.
The fund topped its peer group average by a similar margin.
Trading Symbol: FDGRX
Despite some turbulence in February and March, the market
Start Date: January 17, 1983 continued its uptrend that began following the November 2016
general election. The market's preference the past six months
Size (in millions): $44,817.22 was decidedly pro-growth, with two of the benchmark's
traditionally higher-growth sectors, information technology and
consumer discretionary, leading the way.
These categories represented 64% of fund assets, on average,
Investment Approach this period – about 42% for tech and roughly 21% for consumer
discretionary. So, security selection here was a big plus versus
• Fidelity® Growth Company Fund is a diversified the benchmark, as were our sizable overweightings.
domestic equity strategy that invests across a
spectrum of companies, from blue chip to aggressive Looking slightly longer term, the fund gained about 29% the past
growth. year. The relative-performance story was once again strong, as
the fund handily outpaced the benchmark and bested the peer
• Our investment approach is anchored by the
group average by a wider margin.
philosophy that the market often underestimates the
duration of a company's growth, particularly in cases
where the resiliency and extensibility of the business Q: Which individual holdings helped most the
model are underappreciated. past six months
• We focus on firms operating in well-positioned Chipmaker Nvidia was our largest holding and by far the top
industries and niches that we believe are capable of contributor versus the benchmark, as the stock continued its
delivering persistent sales and earnings growth. very strong performance that began in the back half of 2016. Our
• This approach typically leads us to companies that we sizable overweighting gained 26% and added 1 percentage
think have the potential to unlock shareholder value point to the fund's relative result.
through either a growth-enhancing product cycle or
As shareholders may know, I focus on finding companies with
an internal catalyst such as a turnaround or
open-ended growth opportunities over the long term, which for
acquisition.
me generally means the next three to five years. Within tech, in
• We believe it critical that companies fund their own particular, I like firms in niches that offer faster growth, including
growth – through the cash they generate – and differentiated semiconductor companies, internet leaders, new
benefit from management teams focused on creating software firms and video-game developers.
long-term shareholder value.
Known initially for its graphics processors, Nvidia is now
considered by many as a go-to source of chips for AI (artificial
intelligence), VR (virtual reality) and autonomous-driving
applications, among others. I thought Nvidia's diversified
business and prospects for long-term growth aligned well with
my investment philosophy.
This period, the company continued to grow its AI/machine
learning business at a fast pace. Nvidia also made strides to
advance its hardware and software offerings, despite looming
competition. I trimmed the fund's exposure for portfolio-
2 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.PORTFOLIO MANAGER Q&A | AS OF MAY 31, 2018
construction reasons, but Nvidia remained our largest holding In terms of positioning, my continued confidence in Alnylam and
on May 31, based on my conviction in its growth potential. Acadia was reflected in the fund's period-end overweightings in
both stocks. Meanwhile, I pared our stake in Exelixis to pursue
Q: Where else did you achieve strong results other opportunities within health care, but it remained
overweighted as of May 31.
Sticking with technology, the fund benefited from several
I'll also mention software giant Microsoft, which was a large fund
enterprise-orientated holdings that helped companies
holding in absolute terms, but underweighted versus the
modernize their IT environments. Examples include
benchmark's sizable position. From an asset management
Salesforce.com (+24%), Nutanix (+63%) and Red Hat (+28%).
perspective, I preferred to own bigger positions in other names I
Elsewhere within the software & services industry, an out-of-
thought had higher growth prospects. Shares of Microsoft
benchmark stake in Canadian e-commerce platform Shopify also
climbed about 18% on better-than-expected financial results
boosted our relative result.
driven by strong performance across all business segments,
Within consumer discretionary, our longtime and large holding especially cloud and personal computing, which includes its
in yoga-inspired apparel retailer lululemon athletica was a top Windows operating system, as well as gaming and ad revenue.
contributor. Shares of lululemon advanced 57% on strong
financial results, as the company rebuilt its online capabilities last Q: What's your outlook as of May 31, Steve
year, improved its offerings and benefited from easier
comparisons. In the first half of 2018, the economy accelerated and the stock
market continued to climb a wall of worry. Currently, one of the
Another notable contributor from the sector was Amazon.com
biggest concerns is a global trade war. Barring that risk, I foresee
(+38%), the fund's second-largest position. Amid an intensely
continued global expansion. However, I think it's important to
competitive retail environment, the company continues to eat up
note that we are well into the economic cycle, and that we will
market share and, as we approach the one-year anniversary of its
eventually experience a downturn.
acquisition of Whole Foods Market, diversify the ways in which it
serves customers. Against this backdrop, I plan to become even more selective
with the fund's investments. Looking ahead, I will consider
Q: What was the story in health care increasing the average market capitalization of the fund's
holdings, partly in an effort to mitigate the risk of a future
My stock picks here were additive, although the fund's downturn. ■
overweighting was a negative because the sector
underperformed. A non-benchmark stake in BeiGene and timely
ownership of Avexis helped most.
The appeal of these companies – and the sector in general – is
that current and future products can address large, unmet
medical needs for an aging population. Many innovative biotech
and pharmaceutical companies continue to benefit from
successful drug launches and favorable drug-candidate data.
BeiGene continued to advance its proprietary pipeline of
oncology drugs, and is partnering with competitor Celgene on
development and bringing Celgene's drugs to China. Avexis has
a promising gene therapy program for spinal muscular atrophy.
It was acquired by Novartis in May.
Q: Now let's turn to notable detractors…
Several came from the pharmaceuticals, biotechnology & life
sciences segment within health care. Among these were
Alnylam Pharmaceuticals (-26%), the fund's biggest individual
detractor, and Exelixis (-24%). Both are focused on genomics-
based drug discoveries, and their stocks suffered because
investors became increasingly concerned about competition.
The fund's overweighting in Acadia Pharmaceuticals returned
roughly -40%. The stock fell in April on a report raising concerns
about the safety of the company's treatment for Parkinson's
disease psychosis, despite the company and the U.S. Food and
Drug Administration producing evidence supporting the drug's
efficacy.
3 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.PORTFOLIO MANAGER Q&A | AS OF MAY 31, 2018
LARGEST CONTRIBUTORS VS. BENCHMARK
Average Relative
Steve Wymer on the secondary Holding Market Segment
Relative Contribution
Weight (basis points)*
effects of U.S. tax cuts: Information
NVIDIA Corp. 6.09% 109
Technology
"In December 2017, President Donald Trump lululemon athletica, Consumer
1.47% 61
signed into law a sweeping tax bill that included key Inc. Discretionary
reductions in individual and corporate tax rates, with BeiGene Ltd. ADR Health Care 0.66% 56
the latter dropping from 35% to 21% – its lowest Avexis, Inc. Health Care 0.39% 50
level since 1939. Consumer
Amazon.com, Inc. 1.40% 39
Discretionary
"The bill was touted as a means to put money back
into the pockets of consumers, and to allow * 1 basis point = 0.01%.
companies to create jobs. What I'm particularly
interested in is where consumers and companies
are likely to spend this extra cash. LARGEST DETRACTORS VS. BENCHMARK
"On the consumer front, I think the fund is well-
Average Relative
positioned in companies I think can grow for a Relative Contribution
number of reasons, including an uptick in Holding Market Segment Weight (basis points)*
discretionary spending as consumer health Alnylam
continues to improve. Health Care 1.30% -53
Pharmaceuticals, Inc.
"The fund holds investments that range from Information
Microsoft Corp. -2.45% -27
Technology
personalized new-media names to online leaders in
Exelixis, Inc. Health Care 0.78% -27
retail that are taking share from physical stores. I'm
also bullish on leaders in athletic footwear and ACADIA
Health Care 0.39% -24
Pharmaceuticals, Inc.
apparel that are executing well, select luxury-goods
Ionis Pharmaceuticals,
providers and electric-vehicle makers with high Health Care 0.80% -23
Inc.
customer satisfaction.
* 1 basis point = 0.01%.
"Meanwhile, companies are looking to deploy their
tax savings in a number of ways, including
improving their businesses. For a lot of firms, this
may mean more technology spending.
"I think several of the fund's software & services
holdings stand to benefit if corporations go this
route, particularly SaaS (software-as-a-service)
companies that apply big data and analytics as a key
benefit. SaaS companies have an advantage in
applying artificial intelligence to help their
customers make better decisions, as the nature of
their cloud offerings oftentimes allows them to pool
client data, with permission, to provide more data to
draw better insights."
4 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.PORTFOLIO MANAGER Q&A | AS OF MAY 31, 2018
ASSET ALLOCATION
Relative Change
From Six Months
Asset Class Portfolio Weight Index Weight Relative Weight Ago
Domestic Equities 90.14% 99.60% -9.46% -0.80%
International Equities 9.55% 0.40% 9.15% 0.76%
Developed Markets 5.95% 0.35% 5.60% 0.81%
Emerging Markets 3.54% 0.04% 3.50% -0.11%
Tax-Advantaged Domiciles 0.06% 0.01% 0.05% 0.06%
Bonds 0.00% 0.00% 0.00% 0.00%
Cash & Net Other Assets 0.31% 0.00% 0.31% 0.04%
Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of
the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future
settlement, Net Other Assets can be a negative number.
"Tax-Advantaged Domiciles" represent countries whose tax policies may be favorable for company incorporation.
MARKET-SEGMENT DIVERSIFICATION
Relative Change
From Six Months
Market Segment Portfolio Weight Index Weight Relative Weight Ago
Information Technology 43.98% 38.81% 5.17% -0.55%
Consumer Discretionary 21.75% 18.37% 3.38% 0.52%
Health Care 18.22% 13.44% 4.78% 0.22%
Industrials 5.26% 12.59% -7.33% -0.51%
Consumer Staples 4.17% 5.55% -1.38% -0.17%
Financials 2.86% 3.59% -0.73% -0.15%
Energy 1.89% 0.91% 0.98% 0.48%
Materials 0.90% 3.48% -2.58% -0.14%
Telecommunication Services 0.45% 0.85% -0.40% 0.02%
Real Estate 0.21% 2.35% -2.14% 0.23%
Utilities 0.00% 0.06% -0.06% 0.01%
Other 0.00% 0.00% 0.00% 0.00%
5 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.PORTFOLIO MANAGER Q&A | AS OF MAY 31, 2018
10 LARGEST HOLDINGS
Portfolio Weight
Market Segment Portfolio Weight
Holding Six Months Ago
NVIDIA Corp. Information Technology 7.13% 7.09%
Amazon.com, Inc. Consumer Discretionary 5.89% 4.79%
Apple, Inc. Information Technology 4.87% 5.12%
Alphabet, Inc. Class A Information Technology 3.41% 3.62%
Facebook, Inc. Class A Information Technology 3.10% 3.34%
Salesforce.com, Inc. Information Technology 2.97% 2.94%
Microsoft Corp. Information Technology 2.47% 2.28%
adidas AG Consumer Discretionary 2.29% 2.49%
Alphabet, Inc. Class C Information Technology 1.83% 1.94%
lululemon athletica, Inc. Consumer Discretionary 1.78% 1.25%
10 Largest Holdings as a % of Net Assets 35.73% 35.22%
Total Number of Holdings 402 399
The 10 largest holdings are as of the end of the reporting period, and may not be representative of the fund's current or future investments. Holdings
do not include money market investments.
FISCAL PERFORMANCE SUMMARY: Cumulative Annualized
Periods ending May 31, 2018 6 1 3 5 10 Year/
Month YTD Year Year Year LOF1
Fidelity Growth Company Fund
12.18% 11.11% 28.71% 17.28% 18.87% 12.80%
Gross Expense Ratio: 0.85%2
Russell 3000 Growth Index 7.21% 6.43% 21.32% 13.69% 15.51% 10.86%
Morningstar Fund Large Growth 7.42% 6.73% 19.82% 11.47% 13.82% 9.33%
% Rank in Morningstar Category (1% = Best) -- -- 5% 3% 3% 4%
# of Funds in Morningstar Category -- -- 1,461 1,269 1,151 836
1 Life
of Fund (LOF) if performance is less than 10 years. Fund inception date: 01/17/1983.
2 Thisexpense ratio is from the prospectus in effect as of the date shown above and generally is based on amounts incurred during that fiscal year. It
does not include any fee waivers or reimbursements, which would be reflected in the fund's net expense ratio.
Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a
gain or loss when you sell your shares. Current performance may be higher or lower than the performance stated. Performance shown is that of the
fund's Retail Class shares (if multiclass). You may own another share class of the fund with a different expense structure and, thus, have different
returns. To learn more or to obtain the most recent month-end or other share-class performance, visit fidelity.com/performance,
institutional.fidelity.com, or 401k.com. Total returns are historical and include change in share value and reinvestment of dividends and capital gains,
if any. Cumulative total returns are reported as of the period indicated. Please see the last page(s) of this Q&A document for most-recent calendar-
quarter performance.
6 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.PORTFOLIO MANAGER Q&A | AS OF MAY 31, 2018
Definitions and Important Information performing fund in a category will always receive a rank of 1%. %
Rank in Morningstar Category is based on total returns which
include reinvested dividends and capital gains, if any, and exclude
Unless otherwise disclosed to you, in providing this information,
sales charges. Multiple share classes of a fund have a common
Fidelity is not undertaking to provide impartial investment advice, act
portfolio but impose different expense structures.
as an impartial adviser, or to give advice in a fiduciary capacity.
FUND RISKS RELATIVE WEIGHTS
The value of the fund's domestic and foreign investments will vary Relative weights represents the % of fund assets in a particular
from day to day in response to many factors, such as adverse issuer, market segment, asset class or credit quality relative to the
political, regulatory, market, or economic developments. Stock benchmark. A positive number represents an overweight, and a
values fluctuate in response to the activities of individual companies, negative number is an underweight. The fund's benchmark is listed
and general market and economic conditions. You may have a gain immediately under the fund name in the Performance Summary.
or loss when you sell your shares. Foreign investments involve
greater risks than those of U.S. investments. 'Growth' stocks can
perform differently from the market as a whole and other types of
stocks and can be more volatile than other types of stocks.
IMPORTANT FUND INFORMATION
Relative positioning data presented in this commentary is based on
the fund's primary benchmark (index) unless a secondary benchmark
is provided to assess performance.
INDICES
It is not possible to invest directly in an index. All indices represented
are unmanaged. All indices include reinvestment of dividends and
interest income unless otherwise noted.
Russell 3000 Growth Index is a market-capitalization-weighted
index designed to measure the performance of the broad growth
segment of the U.S. equity market. It includes those Russell 3000
Index companies with higher price-to-book ratios and higher
forecasted growth rates.
S&P 500 is a market-capitalization-weighted index of 500 common
stocks chosen for market size, liquidity, and industry group
representation to represent U.S. equity performance.
MARKET-SEGMENT WEIGHTS
Market-segment weights illustrate examples of sectors or
industries in which the fund may invest, and may not be
representative of the fund's current or future investments. Should
not be construed or used as a recommendation for any sector or
industry.
RANKING INFORMATION
© 2018 Morningstar, Inc. All rights reserved. The Morningstar
information contained herein: (1) is proprietary to Morningstar
and/or its content providers; (2) may not be copied or
redistributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are
responsible for any damages or losses arising from any use of this
information. Fidelity does not review the Morningstar data and, for
mutual fund performance, you should check the fund's current
prospectus for the most up-to-date information concerning
applicable loads, fees and expenses.
% Rank in Morningstar Category is the fund's total-return
percentile rank relative to all funds that have the same Morningstar
Category. The highest (or most favorable) percentile rank is 1 and
the lowest (or least favorable) percentile rank is 100. The top-
7 |PORTFOLIO MANAGER Q&A | AS OF MAY 31, 2018 Manager Facts Steven Wymer is a portfolio manager at Fidelity Management & Research Company (FMRCo), the investment advisor for Fidelity's family of mutual funds. Fidelity Investments is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and other financial products and services to more than 20 million individuals, institutions and financial intermediaries. In this role, he manages Fidelity Growth Company Fund (since 1997) and Fidelity Series Growth Company Fund (since 2013). Prior to assuming his current responsibilities in 1997, Mr. Wymer held various other roles at Fidelity, including that of portfolio manager of Fidelity Dividend Growth Fund from 1995 to 1997, portfolio assistant on Fidelity OTC Portfolio from 1994 to 1995, portfolio manager of Select Chemicals Portfolio from 1993 to 1995, portfolio assistant on Fidelity Magellan Fund from 1992 to 1994, portfolio manager/portfolio assistant on Select Automotive Portfolio and Fidelity Growth and Income Fund from 1990 to 1992, and equity research analyst from 1989 to 1990. Before joining Fidelity in 1989, Mr. Wymer worked as a small business consultant at Deloitte Haskins & Sells from 1985 to 1987. He has been in the financial services industry since 1989. Mr. Wymer earned his bachelor of science degree in accounting from the University of Illinois and his master of business administration degree from the University of Chicago. 8 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.
PERFORMANCE SUMMARY: Annualized
Quarter ending September 30, 2018 1 3 5 10 Year/
Year Year Year LOF1
Fidelity Growth Company Fund
28.94% 24.13% 18.44% 16.52%
Gross Expense Ratio: 0.85%2
1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 01/17/1983.
2 This expense ratio is from the prospectus in effect as of the date shown above and generally is based on amounts incurred during that fiscal year. It
does not include any fee waivers or reimbursements, which would be reflected in the fund's net expense ratio.
Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a
gain or loss when you sell your shares. Current performance may be higher or lower than the performance stated. Performance shown is that of the
fund's Retail Class shares (if multiclass). You may own another share class of the fund with a different expense structure and, thus, have different
returns. To learn more or to obtain the most recent month-end or other share-class performance, visit fidelity.com/performance,
institutional.fidelity.com, or 401k.com. Total returns are historical and include change in share value and reinvestment of dividends and capital gains,
if any. Cumulative total returns are reported as of the period indicated.
Before investing in any mutual fund, please carefully consider Information included on this page is as of the most recent calendar
the investment objectives, risks, charges, and expenses. For quarter.
this and other information, call or write Fidelity for a free S&P 500 is a registered service mark of Standard & Poor's Financial
prospectus or, if available, a summary prospectus. Read it Services LLC.
carefully before you invest. Other third-party marks appearing herein are the property of their
respective owners.
Past performance is no guarantee of future results.
All other marks appearing herein are registered or unregistered
Views expressed are through the end of the period stated and do not trademarks or service marks of FMR LLC or an affiliated company.
necessarily represent the views of Fidelity. Views are subject to change at
Fidelity Brokerage Services LLC, Member NYSE, SIPC., 900 Salem Street,
any time based upon market or other conditions and Fidelity disclaims any
Smithfield, RI 02917.
responsibility to update such views. These views may not be relied on as
investment advice and, because investment decisions for a Fidelity fund Fidelity Investments Institutional Services Company, Inc., 500 Salem
are based on numerous factors, may not be relied on as an indication of Street, Smithfield, RI 02917.
trading intent on behalf of any Fidelity fund. The securities mentioned are © 2018 FMR LLC. All rights reserved.
not necessarily holdings invested in by the portfolio manager(s) or FMR Not NCUA or NCUSIF insured. May lose value. No credit union guarantee.
LLC. References to specific company securities should not be construed
709714.8.0
as recommendations or investment advice.
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