This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fidelity's Transportation, Airline Funds Soar

NEW YORK ( TheStreet) -- The Fidelity Select Transportation Portfolio (FSRFX) rolled to a gain of 11% last month, the most among stock mutual funds.

Warren Buffett's Berkshire Hathaway (BRK/A) completed the $44 billion purchase of Burlington Northern Santa Fe railroad in February, focusing investors' attention on the transportation industry. The Department of Commerce last week said January's new orders for manufactured goods rose 1.7% and shipments climbed 0.3% over December, buoying railroads.

Other railroad stocks held by the Fidelity fund include Union Pacific (UNP), which gained 11%; CSX (CSX - Get Report), which advanced 10%; and Norfolk Southern (NSC - Get Report), which increased 9%. The three railroads represent more than 35% of the fund's assets.

The third- and fifth-largest holdings, respectively, are Delta Air Lines (DAL - Get Report), up 5%; and Southwest Airlines (LUV - Get Report), up 11%. They're positioned for an uptick in corporate travel, as predicted by a survey from aviation consultant Ascend. Expanded travel budgets and more planned corporate trips by executives will benefit airline companies.

The fourth-best-performing mutual fund in February, Fidelity Select Air Transportation Portfolio (FSAIX), is a pure play on that segment of the transportation industry. The fund climbed 10% in one month. Southwest and Delta, the two top holdings, account for 28% of fund assets, with Boeing (BA - Get Report) at nearly 9%.

Six of the 10-best-performing stock mutual funds in February focus heavily on metals and other commodities. None are bigger than the $2.6 billion Oppenheimer Gold & Special Minerals Fund (OPGSX), which rose almost 10% during the month on large holdings of Randgold Resources (GOLD - Get Report), Barrick Gold (ABX) and Goldcorp (GG).

Oppenheimer manager Shanquan Li makes the case for owning mining shares instead of bullion to avoid the 28% gain on the collectibles tax and to capture the inherent operating leverage of mining shares, which tend to rise and fall three times faster than the underlying metal.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BA $144.73 0.72%
DAL $46.19 1.00%
CSX $30.90 -0.77%
GOLD $59.18 1.30%
LUV $37.82 0.77%

Markets

Chart of I:DJI
DOW 17,591.34 -6.86 -0.04%
S&P 500 2,096.93 -1.11 -0.05%
NASDAQ 5,107.08 -8.3020 -0.16%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs