Fund Feeds on Clunkers

Like a phoenix rising from the ashes, the United States car industry has bounced back spectacularly from earlier this year when the sector was at the verge of becoming nothing more than a memory. Fidelity Select Automotive (FSAVX Quote), possibly the only pure play on the auto industry available, has been perfectly positioned to gain as auto manufacturers, sellers and parts suppliers have all headed skyward.

Currently, the industry's stellar performance has sent FSAVX up more than 100% year to date for the period ending Aug. 10. With continued assistance from a number of government stimulus efforts, it is likely the rally will continue.

FSAVX was initially launched in 1986. The fund has since seen its share of managers, but since February 2009, Fidelity Select Automotive has been managed by Michael Weaver.

During his short stint at the helm, he has witnessed the fund hit rock bottom as big name auto companies have turned to bankruptcy, federal aid, and mergers as their businesses have fallen victim to tough economic times. However, he has also commanded the fund through its current rally. The most recent performance of FSAVX definitely earns Weaver and his team the 0.56% fee charged on the fund.

FSAVX is designed to follow the entire automotive sector. However, most of the movement of the fund can be attributed to the companies making up its top ten holdings. These firms currently account for almost 75% of the fund's total assets.

During the crunch that left big name car manufacturers gasping for air, FSAVX benefited by not having its top positions littered with big-name car manufacturers like Ford(F Quote), and General Motors. Instead, by holding smaller supply companies such as Johnson Controls(JCI Quote), Tenneco(TEN Quote), Penske Automotive Group(PAG Quote) and BorgWarner(BWA Quote).