Fidelity Manager Joins Hedge Fund

David Felman, one of Fidelity Investments’ best-performing mutual fund managers in recent years as head of the firm’s Mid-Cap Stock fund, has left the firm, the Boston-based company said Wednesday.

Felman, who had run the $7.1-billion fund since August 1999, also managed two smaller funds. The Mid-Cap Stock fund soared 32.1% last year and is down 5.2% this year, handily beating its average mid-cap growth peer in both periods, according to Morningstar Inc. Felman has avoided technology stocks, Morningstar said, noting that Mid-Cap Stock had only 3% of assets in the sector at the end of the first quarter.

Felman is joining a new hedge fund, Bloomberg News reported.

Fidelity named Beso Sikharulidze to replace Felman at Mid-Cap.

The firm also appointed Peter Saperstone to succeed Felman as manager of Fidelity Advisor Mid Cap and Thomas J. Allen to succeed him as manager of VIP: Mid Cap Portfolio.