The Fidelity Contrafund (FCNTX) is a highly popular equity fund with a large-cap bias. Although large cap stocks did sell off Friday, the unproportionally large 6.69% drop in the net asset value (price) of FCNTX alarmed some investors.
The explanation for the large price drop is that Fidelity distributed both dividends and capital gains for a number of their funds with a pay date of Monday, December 16.
The most recent dividends and the capital gains distributions for Fidelity funds are available on the following website:
On Friday, several Fidelity funds experienced large drops of their net asset values (NAVs). For example, the Fidelity Magellan fund showed a 5.57% drop. Other examples include the Latin America Fund (down 17.79%), the China Region Fund (down 9.2%) and the Select Technology Fund (down 6%).
The explanation is that Friday was the ex. date for the distributions of many Fidelity funds. The pay date for the funds is on Monday, December 9. For investors who chose to reinvest the distributions automatically, the value of their holdings will be adjusted on Monday. For investors who chose not to reinvest, their investment account will be credited by the distribution amounts.
The December dividends and the capital gains distributions for Fidelity funds are available on the following website: