FCNTX and FOCPX: Two Fidelity Funds Riding Out SpaceX Volatility

Fidelity OTC FOCPX and Fidelity Contrafund FCNTX have demonstrated resilience this year despite the volatility surrounding SpaceX following its highly anticipated IPO. SpaceX priced its IPO at $135 per share on June 12, 2026 and opened at $150 per share on its first day of trading. As of Aug. 26, the stock price was $139.63, just 3.4% above its IPO price. However, the shares have experienced significant swings, trading between $104.83 and $225.64 since going public.

Despite this volatility, SpaceX remains a major holding in both Fidelity funds. As of July 31, SpaceX accounted for 4.54% of FOCPX and 4.56% of FCNTX, placing it among the largest positions in each portfolio.

FOCPX has benefited particularly well from its pre-IPO exposure to SpaceX. The fund gained 24.96% year to date through Aug. 26, while FCNTX returned 10.59% during the same period. Their diversified holdings in technology and other large-cap growth companies have helped reduce the negative impact of SpaceX's price fluctuations.

The funds' strong performance also reflects the broader strength of their portfolios. Major holdings across companies such as Nvidia, Meta, Amazon and Alphabet provide multiple sources of return rather than leaving performance dependent on SpaceX alone. The funds require no minimum initial investments and have low expense ratios at 0.74% for FCNTX and 0.78% for FOCPX.

Zacks Mutual Fund Rank also remains favorable for both funds. FOCPX carries a Zacks Mutual Fund Rank #1 (Strong Buy), while FCNTX is rated #2 (Buy). To see how these funds performed compared to their category, and Top-Ranked Zacks Mutual Funds, please click here.

Bottom Line

The performance of both funds illustrates how substantial exposure to a volatile private-to-public company can coexist with strong overall returns when embedded within diversified portfolios. As SpaceX establishes itself as a publicly traded company, its influence on these Fidelity funds will remain an important factor for investors to watch.

Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

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This article originally published on Zacks Investment Research (zacks.com).

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