Fidelity Growth Strategies Fund cites MasTec as key AI infrastructure driver
The Fidelity Growth Strategies Fund attributed its first-quarter 2026 outperformance to strategic bets on industrials, with MasTec, Sterling Infrastructure, and Comfort Systems USA leading gains amid the build-out of AI data centres.
Fidelity Investments has identified MasTec, Inc. as a significant contributor to the first-quarter 2026 performance of its Fidelity Growth Strategies Fund. The fund, which focuses on domestic midcap growth stocks, reported a return of -3.21 per cent for the quarter, outperforming the Russell Midcap Growth Index’s decline of 6.35 per cent. This outperformance was primarily driven by industry and stock selection, particularly within the industrials sector.
The fund attributed MasTec’s success to the company’s role in constructing infrastructure for AI-capable data centres. MasTec shares rose 48 per cent relative to the benchmark during the quarter. The fund maintained an overweight position in the stock, although it slightly trimmed the stake during the quarter to manage position size. MasTec, an infrastructure engineering and construction firm, closed at $385.00 per share on May 19, 2026, with a market capitalisation of $30.42 billion.
MasTec was not among the top 20 most popular stocks among hedge funds heading into 2026, yet institutional interest has grown. At the end of the fourth quarter, 71 hedge fund portfolios held MasTec, an increase from 67 in the previous quarter. The stock has gained 147.84 per cent over the past 52 weeks, with a one-month return of 2.26 per cent.
The fund also highlighted Sterling Infrastructure, which rose 33 per cent, and Comfort Systems USA, which gained 47 per cent, as top relative contributors in the industrials sector. Fidelity noted that these capital goods firms have seen their businesses grow as a direct or indirect result of investments in AI-capable data centres. All three stocks remained among the fund’s top-20 portfolio overweights.
The performance comes despite broader market volatility in early 2026. The US stock market began the year positively but declined in late February due to concerns over the viability of artificial intelligence investments and conflicts in the Middle East. Investors shifted towards defensive strategies, favouring stable, large-cap firms, which led to value equities outperforming growth stocks. The fund continues to favour companies with strong competitive moats and growth potential.
In the semiconductor space, institutional capital has concentrated further. The proportion of companies in the Philadelphia Semiconductor Index with net long hedge fund positions increased to 57 per cent in April, up from 53 per cent in March. Nvidia remains a favourite long holding for hedge funds, despite a slight contraction in its popularity.
