BOSTON – Fidelity Contrafund, one of the largest investors in Wells Fargo & Co , reduced its stake in the scandal-hit bank by 5 percent in September, according to the fund's latest holdings report.
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Run by star portfolio manager Will Danoff, Contrafund had a $2.2 billion stake in Wells Fargo, or about 50.1 million shares, at the end of September, according to a report released on Sunday. The fund owned about 52.65 million shares at the end of August.
Wells Fargo is the only bank in a Contrafund top 10 holdings list dominated by tech companies. The bank's shares dragged on Contrafund's third-quarter performance, falling nearly 6 percent amid disclosure Wells Fargo branch staff opened as many as 2 million accounts without customers' knowledge.
Contrafund is the third-largest mutual fund investor in Wells Fargo, behind two Vanguard Group index funds, according to Thomson Reuters data.
(Reporting By Tim McLaughlin; Editing by Meredith Mazzilli)