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Yes, that's correct to a great extent.

The story is that while you are doing residency your faculty can make phone calls, emails, and connect with fellowship directors recommending you and that's the most common path that residents take into their fellowship spots.

That's why it's useful to be an University Residency Program so that the faculty help you get a fellowship spot in the same university or with their other university friends, while if you do community residency programs such a chance is lower.
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