Fidelity American Special Situations Fund W-Accumulation
Update: 6 August 2019: Fidelity American Special Situations placed under review
Under review due to persistent underperformance over the past four years. Full details regarding why we have taken this decision can be found here.
Rated Fund 2015-19. Targets turnaround stories
Fidelity American Special Situations has had a rough year or two, but continues to beat the index over five years and was among the best performers amid the recent market turmoil, so we retain our conviction in this fund.
It won Money Observer’s Best North America Fund award in 2016 and was highly commended in 2015 due to its strong risk-adjusted performance. Its focus on recovery situations means that investors should expect inevitable periods of underperformance.
Angel Agudo, its manager since 2012, describes his investment philosophy as a “high conviction, contrarian value approach”. He targets companies suffering from a specific problem that he believes will be resolved by analysing the trends and structure of the sector in which the company operates, the competitive environment and the likelihood of future merger and acquisition activity. He runs a concentrated portfolio of around 50 holdings.
He invests in companies at different stages of recovery to help provide consistent returns in different market conditions.
The fund is one of a handful at Fidelity that started trialling a new fee structure in April 2018 – a lower base fee and a new performance fee linked to success in beating the wider market – so investors should not pay for underperformance.
Narrative and ratings content all as of January 2019.See all Money Observer rated funds
|Berkshire Hathaway Inc B||6.61 %|
|Oracle Corp||5.46 %|
|Willis Towers Watson PLC||4.31 %|
|Fidelity ILF - USD A Acc||3.60 %|
|Fairfax Financial Holdings Ltd Shs Subord.Vtg||3.19 %|
|Chevron Corp||3.11 %|
|Wells Fargo & Co||3.02 %|
|T-Mobile US Inc||2.86 %|
|Exelon Corp||2.79 %|
|Bank of New York Mellon Corp||2.55 %|
|United States||89.27 %|
|Financial Services||25.88 %|
|Consumer Defensive||7.61 %|
|Communication Services||6.35 %|
|Consumer Cyclical||5.93 %|
Data provided by Morningstar.
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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.