Does anyone has an opinion about this unusual fund, investing in leveraged companies? It has load 5.75%, but it is waived at Fidelity, see https://fundresearch.fidelity.com/mutual-funds/summary/74676P169
Red line-midcap value, green line- S&P500
The fund was launched on 05/18/2009, and then it was growing fast and steady. In part, it was because of 22% in health care, but this alone probably cannot account for its success and stability. The manager, David Glancy, was managing Fidelity Leveraged Company fund FLVCX 12/19/2000 — 07/01/2003, outperforming midcap stocks by 60% during that short time. These 60% played the main role in the historical outperformance of FLVCX since inception to the present time.
In 2003, David Glancy started a hedge fund, "with mixed results", and then he returned to the mutual fund business in 2009. Now he is outperforming his previous charge FLVCX with smaller volatility. His other fund, Putnam Capital Spectrum A PVSAX (larger companies), also does well. For a discussion, see also http://files.parsintl.com/eprints/80013.pdf