Fidelity Magellan Fund

May 5 (Bloomberg) -- Fidelity Magellan Fund bought financial stocks including JPMorgan Chase & Co. and Bank of America Corp., leading to the $39.4 billion fund's biggest monthly gain in five years.

Manager Harry Lange upped his stake in banks and brokerage companies in March by 1.9 percentage points, about $750 million, to 10 percent of the fund, data compiled by Bloomberg show. He bought $408 million in JPMorgan and $190 million in Charlotte, North Carolina-based Bank of America.

Financial stocks reversed six months of declines in April that were caused by the subprime-mortgage crisis. The S&P's 500 Financials Index gained 6.5 percent, including reinvested dividends after dropping 28 percent in the prior 12 months. Magellan, once the largest U.S. fund, matched the index and had its biggest monthly gain since April 2003.

"He's calling the bottom in financials,'' said Jim Lowell, chief strategist at Adviser Investment Management Inc. in Watertown, Massachusetts, whose clients buy Fidelity funds. He's aggressively buying for the first time in a decade.''