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Fidelity's Q4 Letter: Coherent Leads, Axon Lags, IDEXX Left Out

The mid-cap growth fund modestly beat its benchmark in a quarter dominated by AI-linked large caps.

Overview

  • The Fidelity Growth Strategies Fund (Retail Class) returned -3.44% in Q4 2025 versus the Russell Midcap Growth Index’s -3.70%.
  • Fidelity cited Coherent as a leading contributor after early-November results topped expectations on AI infrastructure demand, and noted the $400 million sale of its aerospace and defense unit to Advent.
  • Coherent closed at $211.00 on Feb. 4, 2026, up 21.86% over the past month and 110.03% over 12 months, with a $33.16 billion market cap and 78 hedge fund holders at Q3’s end.
  • Axon was the biggest relative detractor as November earnings missed on margins despite a revenue beat, though Fidelity kept it as a top position at year-end.
  • Fidelity avoided IDEXX despite a strong November update, citing concerns about the durability of its growth trajectory.