How big would the financial impact be if Fidelity divested?
• Fidelity’s Contra fund completely divested its large holdings of PetroChina and Sinopec on the New York Stock Exchange during the first two calendar quarters in 2007, without disturbing the market! This large sell-off demonstrated that they could divest hundreds of millions of dollars of shares with neglible impact to the value of the mutual funds involved in the sell-off. • Through December 31, 2006, Fidelity Contra fund had been the largest holder of PTR on the NYSE. Using the December 31, 2006, holdings and February 14 share prices for a financial scenario, Contra fund had $394 million invested in PetroChina out of $68.13 billion in total assets. • Consider this extreme hypothetical scenario as another way to dramatize the minimal risk to Fidelity of a large divestment. Suppose PetroChina lost half its value as a result of divestment. Each share of Contra fund, priced at $66.65 on February 14, 2007, would drop by 19 cents, which is less than three tenths of one percent. To underst
