Magellan, run by Harry Lange, appears to have bought Yahoo Inc (YHOO.O: Quote, Profile, Research) after the $44.6 billion bid made for the Internet media firm by software giant Microsoft Corp (MSFT.O: Quote, Profile, Research). The fund reported a $122 million stake in Yahoo at the end of February.

Fidelity's flagship fund raised its holdings of Motorola Inc (MOT.N: Quote, Profile, Research), owning $226.3 million of the cell phone and network equipment maker at the end of February, up 55 percent from a month ago. Motorola shares fell 13.5 percent in February.

Magellan also raised its ownership of bond insurer MBIA Inc (MBI.N: Quote, Profile, Research) 12-fold to $167 million at the end of February from $13.6 million a month ago, the data show. MBIA shares dropped 16.3 percent during the month.

CONTRAFUND CUT GOLDMAN, LEHMAN

Overall, Magellan's exposure to the financial sector dropped to 8.3 percent at end-February from 8.9 percent a month earlier. Contrafund's holdings in the sector fell to 12.1 percent from 14.4 percent, the data show.

Contrafund manager Will Danoff cut his fund's holdings of investment banks Goldman Sachs (GS.N: Quote, Profile, Research) by 39 percent to $144.2 million and Lehman Brothers LEH.N by 62 percent to $65.2 million at the end of February. He also slashed holdings of Citigroup (C.N: Quote, Profile, Research) by 79 percent to $39.6 million, the data show.

Contrafund's holdings of oil and gas company EOG Resources (EOG.N: Quote, Profile, Research) rose 62 percent to $591 million at end-February against the stock's 36 percent gain in the month, the data show.

Contrafund and Magellan added to their Genentech positions. Contrafund owned $1.44 billion of the biotech firm at the end of February, up 10.8 percent from the prior month, and Magellan more than doubled its ownership to $298 million from $135.7 million. The stock rose 7.9 percent for the month.

Contrafund and Magellan are underperforming their benchmarks this year. Contrafund lost 11.2 percent and Magellan was down 12.4 percent in the first quarter of 2008 compared with the S&P 500 index's which was down 9.40 percent for the same period.