"We own a healthy dose of Fidelity Select Healthcare (FSPHX) in each of our model portfolios," says fund expert Jim Lowell.

The editor of Fidelity Investor explains, "Manager Eddie Yoon and I caught up this month. His command of the sector and his growth-oriented discipline continue to serve us well on both our risk-adjusted and real return fronts/

"Of course, healthcare (representing nearly 16% of our total GDP) is unlike any other sector in the S&P. It is so diversified and global, so interrelated to technology, manufacturing, and R&D, so dependent upon delivering real goods and services for consumer consumption, that it is almost an economy unto itself.

Fund guru Jim Lowell has chosen Fidelity Select Health Care (FSPHX) as his latest spotlight fund of the month; the editor of The Fidelity Investor explains, "The fund continues to be a clear market overweight position for our fundamentally-driven portfolios.

"So far this year, manager Eddie Yoon is returning a shade less than that of the S&P 500; but I don't double him or my premise for holding his fund.

Fidelity Select Healthcare (FSPHX) is among the latest additions to the model portfolio maintained by Jim Lowell to his Fidelity Investor. Here's the reasoning behind this "defensive" fund selection.

"I remain bullish long-term, both with regard to the global economy and markets and with specific regard to our own. But, I also remain cautious about any immediate solution to solve what could be even more meddlesome underlying issues with regard to our economy and markets.

"Today's potential for 'recession' now looks more highly correlated to the 1989-1991 recession; driven largely by a speculative housing bubble and the S&L and Equity Line selling frenzy. We're prepared.

"Meanwhile, we have added Fidelity Select Healthcare to our portfolio. Select Healthcare is managed by Matt Sabel. Matt has done what few other recent managers of this fund have been able to do – he's outperformed his
benchmark MSCI US IM Health Care index since taking over the fund in August 2006.