The strategy: out of the mainstream, into the niche (photo: freepik)
The Almost global find (ISIN: LU0966156712) Fidelity is not a fund for everyone. He pursues a radical “out-investing” approach and thus dances out of the series of the usual suspects. While most fund managers invest in the same, much -noticed sectors, this fund is specifically looking for “forgotten” industries and regions. And not only that: In order to benefit from incorrect reviews on the market, both long and short positions are used.
Independence as the top priority
Dmitry Solomakhin, who has managed the fund since September 2013, is pursuing an unconventional and independent investment approach. It relies on a thorough fundamental analysis and healthy skepticism compared to the general market opinion.
His goal: to track down companies that are overlooked by the mainstream. It is not just about obviously undervalued stocks, but also about companies that have come to an imbalance due to structural or cyclical problems and therefore have enormous catch -up potential in the long term.
The strategy: out of the mainstream, into the niche
The core strategy of soloma clinic is to avoid current fashion sectors such as overheated technology shares. Instead, he is investing in areas that the market is currently neglected. He calls this approach “out-investing”. The global stock universe is not only searched for attractive long positions, but also targeted short positions.
These short positions build up fund management over derivative instruments and thus enable the fund to benefit from falling courses-especially for companies with weak balance sheets, failed business models or bad management. With this dynamic control of the long and short portfolio, the portfolio remains stable even in turbulent times and additional return sources are opened up.
The top positions: a look at the outbox
The most important long positions of the fund include telephone activity LM Ericsson, Babcock International Group, Agnico Eagle Mines and Golar LNG. Hapvida Participacoes Investimentos, a leading provider of health services in Brazil, is also a share that, despite the current challenges, appears interesting in the long term. These positions are complemented by other titles such as Alibaba or Rolls Royce, which are also weighted high.
In addition to these classic long positions, the fund is targeted by short positions to benefit from overvalued segments. In short: while the long page is investing in attractive, forgotten markets, the short positions act as a kind of dynamic buffer against misalignments and thus increase the fund’s return potential.
Long -term success, short -term dampers
This strategy pays off in the long term. In addition, the fund often develops incorrectly into a “normal” stock market, which into an interesting one Diversifier might. The performance is over a period of 10 years at a Satsen Plus 194 percent (11.4 percent PA). However, there was a small dent in performance last year with a comparatively modest 9.8 percent.
Conclusion: Courage is rewarded (maybe)
Fidelity Fast Global Fund is a combination of careful fundamental analysis and a radical out investing approach, which includes both long and short positions. This two-track approach makes it possible to invest in forgotten, undervalued markets and at the same time benefit from overvalued companies through short positions.
For investors who are willing to swim against the electricity and using opportunities away from the mainstream, this fund offers the opportunity to achieve solid returns in the long term. However, this requires courageous decisions and a high degree of discipline.
Disclaimer:
No investment advice. No call to buy or sell securities.