Fidelity Mutual Funds Among Winners on Lyft's Lofty IPO Day
(Bloomberg) -- Fidelity mutual funds are among the success stories in Lyft Inc.’s trading debut.
Funds run by Boston-based Fidelity Investments own more than 18.5 million shares, which ascended to a value of almost $1.5 billion as Lyft’s stock jumped 8.7 percent on Friday after its initial public offering. Fidelity’s funds own about 6.8 percent of the ride-hailing app’s Class A shares, making it one of Lyft’s largest holders.
Charles Keller, a spokesman for Fidelity, declined to comment.
Mutual funds have been investing in private startups increasingly in recent years as active managers search for ways to beat their benchmarks. That strategy could bring more windfalls in the year ahead, with expected IPOs including Lyft’s main rival Uber Technologies Inc., along with Pinterest Inc. and Slack Technologies Inc.
Fidelity Contrafund, the $118 billion mutual fund run by Will Danoff, is among Lyft owners with about 2.8 million shares at the end of last year, according to filings. The fund also had investments in so-called unicorns Airbnb Inc., 23andMe Inc., WeWork Cos. and Pinterest Inc.
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