Erin Sullivan, Rising Fidelity Star, Quits to Form Hedge Fund

Erin Sullivan, a rising star at Fidelity, quit as manager of the $17.2 billion (FDEGX Quote)Aggressive Growth fund Monday to form her own hedge fund.

Although several Fidelity managers have recently left to cash in on hot returns from last year, this appears to be a much bigger deal. Four Fidelity funds changed managers in the wake of her resignation.

"She was, in my mind, the next Peter Lynch at Fidelity," says Jim Lowell, editor of independent newsletter Fidelityinvestor.com, referring to the former manager of Fidelity's flagship (FMAGX Quote)Magellan fund. "She steered that fund to great returns in a narrow market by going anywhere, by finding performance wherever it was." ...