Fidelity American Special Situations Fund W-Accumulation
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||6.64 %|
|Oracle Corp||5.21 %|
|Willis Towers Watson PLC||4.08 %|
|Cisco Systems Inc||3.11 %|
|Wells Fargo & Co||3.10 %|
|Bank of New York Mellon Corp||3.01 %|
|Chevron Corp||2.93 %|
|Exelon Corp||2.89 %|
|Qualcomm Inc||2.83 %|
|T-Mobile US Inc||2.83 %|
|United States||90.23 %|
|Financial Services||25.55 %|
|Consumer Defensive||8.31 %|
|Consumer Cyclical||6.17 %|
|Communication Services||6.16 %|
Data provided by Morningstar.
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