Fidelity replaces manager of moribund small-cap fund

Fidelity Investments, the second- largest U.S. mutual-fund company, named Lionel Harris to replace Andrew Sassine as manager of the $3.1 billion Small Cap Stock Fund, which has trailed 98 percent of rivals this year. Sassine, who managed the fund since 2008, has taken a six- month leave of absence and will explore other opportunities at Fidelity when he returns, Sophie Launay, a spokeswoman for Fidelity, said in a telephone interview. His fund beat 53 percent of peers over the past five years. This year, Fidelity Small Cap Stock Fund has been trailing, declining 16 percent through Dec. 1, according to data compiled by Morningstar Inc. in Chicago. Harris had led the smaller, $1.7 billion Fidelity Small-Cap Growth Fund since 2006, beating 62 percent of peers over five years. Patrick Venanzi will replace Harris as manager of Fidelity Small Cap Growth Fund, Boston-based Fidelity said today in a regulatory filing. That fund has lost 3.9 percent this year, lagging behind 54 percent of peers. Fidelity, whose asset-management unit is led by Ronald O'Hanley, has about $1.3 trillion in mutual-fund assets, second to Vanguard Group Inc. --Bloomberg News--