Fidelity Investment's $105 billion Magellan Fund, the world's largest mutual fund, significantly boosted its holdings in technology in the fourth quarter of 1999, but remains underweight in the sector, company figures showed on Tuesday. Some analysts said the underweighting in the explosive technology sector hurt the fund's performance.

"It is amazing to have such a big run-up in technology and still have Magellan and Contra underweight in technology," said Mr David O'Leary of Alpha Equity Research. However, he expected Magellan manager Mr Bob Stansky's shift into technology would continue and would buoy the sector.