The Fidelity Low-Priced Stock Fund (FLPKX) showcased remarkable resilience and strategic acumen in the first quarter, significantly outperforming its benchmark. This success stemmed from meticulous stock picking across diverse economic sectors, demonstrating the fund's commitment to identifying value in often overlooked market segments. The fund’s approach is rooted in a patient, long-term perspective, seeking out businesses with robust fundamentals that are trading at a discount. Even with prevailing market fluctuations and evolving policy landscapes, the fund's managers are confident in their ability to uncover profitable avenues for investors who prioritize a disciplined investment philosophy.

In the initial quarter, the Retail Class shares of the Fidelity Low-Priced Stock Fund delivered a return of -1.33%. This result notably surpassed the Russell 2000 Index, which experienced a more significant decline of -9.48% over the same period. This considerable difference highlights the effectiveness of the fund's investment choices. Furthermore, extending to a three-year annualized performance, the fund achieved a 5.23% gain, considerably better than the benchmark's 0.52%. This consistent outperformance over both short and medium terms underscores the fund's robust investment strategy and its capability to navigate complex market conditions effectively.

The superior returns in the first quarter were largely attributable to strong stock selection, particularly within the information technology, industrials, healthcare, financials, and energy sectors. The fund’s management emphasizes a deep-dive analysis into small- and mid-cap companies, targeting those that are perceived to be undervalued by the broader market. This strategic focus enables the fund to capitalize on mispricings, investing in high-quality enterprises whose true worth is not yet fully recognized. The methodology involves thorough research and a commitment to long-term growth potential, rather than chasing short-term trends.

Despite the current climate characterized by market instability and regulatory uncertainties, the fund continues to find attractive investment opportunities. The investment team remains focused on companies demonstrating sustainable cash flow generation and reasonable valuations, prerequisites for inclusion in the fund’s portfolio. The sector allocations have remained stable, reflecting a consistent belief in the fundamental strength of the chosen industries. Looking forward, a healthy pipeline of prospective investments suggests ongoing growth prospects for the medium term, affirming the fund's unwavering dedication to its core investment principles.

Ultimately, the Fidelity Low-Priced Stock Fund’s performance underscores the benefits of a value-oriented investment strategy, especially when applied with diligence and a long-term outlook. By concentrating on intrinsic value and maintaining a consistent focus on high-quality yet overlooked companies, the fund has successfully delivered superior results compared to its benchmark. This approach proves particularly valuable in navigating periods of heightened market volatility, providing a stable foundation for capital appreciation.

In the second quarter of 2025, the Fidelity Small Cap Growth Fund (FCPGX) navigated a difficult market environment for small-cap growth equities, yet managed to deliver a performance that slightly outpaced its benchmark. This notable resilience was primarily attributed to the fund's discerning selection of stocks, particularly within the technology and consumer discretionary sectors. The fund's managers maintain a steadfast commitment to identifying and investing in high-quality small-cap companies that exhibit strong prospects for earnings growth, underpinned by a rigorous and disciplined approach to valuation and portfolio construction. Amidst ongoing market fluctuations and a landscape of policy uncertainty, the fund continues to uncover attractive investment opportunities across diverse industries, strategically increasing its exposure to the healthcare and real estate sectors.

During the quarter, the fund's Retail Class shares experienced a decline of 11.05%, which, while a negative return, still edged out the benchmark Russell 2000 Growth Index, which saw a larger dip of 11.12%. This period was characterized by a broad retreat in U.S. small-cap growth stocks, as an initial wave of post-election optimism dissipated, replaced by growing investor anxieties regarding the broader economic implications of evolving policy decisions. Such a backdrop underscores the importance of an active and selective investment strategy, as passive index tracking would have resulted in marginally greater losses for investors.

The outperformance, though slight, highlights the efficacy of the fund's fundamental research and stock-picking capabilities. Focusing on businesses with superior earnings potential and sound financials proved crucial in mitigating the downside during a downturn. The strategic allocation shifts, particularly the increased weighting in healthcare and real estate, reflect a dynamic adjustment to capitalize on emerging opportunities and manage risks in sectors perceived to offer more stability or growth catalysts under current conditions. This adaptive approach is a cornerstone of the fund’s philosophy, allowing it to respond effectively to changing market dynamics.

Looking ahead, the fund remains committed to its core investment principles. The emphasis on high-quality companies with robust fundamentals and attractive valuations is expected to continue serving as a buffer against market turbulence while positioning the portfolio for long-term capital appreciation. The fund's management team continuously evaluates market trends and company-specific developments to ensure that its investments align with its objectives of delivering superior risk-adjusted returns. This forward-looking stance, combined with a meticulous selection process, is designed to generate value for shareholders irrespective of short-term economic headwinds.

Despite the prevailing market volatility and an uncertain policy outlook, the Fidelity Small Cap Growth Fund remains confident in its capacity to identify and capitalize on compelling investment opportunities. The fund's commitment to high-quality companies, combined with its flexible and disciplined investment framework, aims to deliver sustained outperformance for its investors.