Fidelity Special Values 15 March 2019
Disclaimer
Disclosure – Independent Investment Research
This is independent research issued by Kepler Partners LLP. The analyst who has prepared this research is not aware of Kepler Partners LLP having a relationship with the company covered in this research report and/or a conflict of interest which is likely to impair the objectivity of the research and this report should accordingly be viewed as independent.
Fidelity Special Values (FSV) is run by Alex Wright, who aims to identify under-valued companies from across the UK market cap spectrum and hold onto them until the price properly reflects their value.
Through this “value investing” approach, Alex has managed to double the returns of the FTSE All Share since taking over in September 2012. Generally, he has achieved good performance in down markets, although this record has been blotted by disappointing returns in 2018, the only major down market under his tenure.
FSV has a more diverse portfolio and approach than many UK equity funds: Alex invests extensively abroad with roughly 70% currently in the UK, and uses derivatives to short stocks, but also to gear up some long positions, and to hedge index exposure when Alex is concerned about general market levels. Alex also runs with a high turnover and many more stocks than any other trust in the AIC UK All Companies sector.
Alex is currently finding lots of opportunities in the UK market. He believes Brexit uncertainty is hitting valuations indiscriminately, and he says that he expects returns to be strong in the coming years given the starting valuations.
Although the focus is to maximise capital growth, and the dividend yield is only 2%, FSV’s dividend has been grown consistently in recent years. The trust has a strong following, and the shares currently trade on a premium of 1.6%, compared to a 0.6% average premium over the past year.
Fund History
