Lynch eventually took over as director of research for the small investment mutualfund company and in 1977 took over portfolio management of Fidelity's Magellan mutualfund.
Investments in Fannie and Freddie represented a small percentage of Fidelity Investments' overall mutual-fund holdings, said Vin Loporchio, a spokesman for the Boston fund company.
And few want to see a turnaround for homebuilders more than mutualfund manager Fidelity, which has a longstanding bet on the sector and is the largest shareholder in several homebuilders in some instances holding a stake of as much as 15%, or two to three times that of the No. 2 shareholder.