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Fidelity Special Situations Class W - Accumulation (GBP)

Sell:5,165.00p Buy:5,165.00p Change: 51.00p (1.00%)
Prices as at 22 November 2024
Sell:5,165.00p
Buy:5,165.00p
Change: 51.00p (1.00%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 22 November 2024
Sell:5,165.00p
Buy:5,165.00p
Change: 51.00p (1.00%)
Prices as at 22 November 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

Alex Wright has been at Fidelity since 2001. He started his career analysing European companies and has focused on UK companies since 2007. As an analyst, he worked closely with Anthony Bolton and Sanjeev Shah, the two previous managers of the Fidelity Special Situations Fund. We think it's positive that he learned his trade from such well-regarded investors.

Wright became a fund manager in 2008, initially focusing on UK smaller companies, but later broadened his remit to include companies of all sizes. He's been lead manager of the Fidelity Special Situations Fund since 2014 and is also responsible for the Fidelity Special Values investment trust. We think this is a reasonable workload for a fund manager of Wright's calibre.

The manager's focus on unloved companies differentiates this fund from many others in the UK All Companies sector, and we think it could bring diversification to the UK section of a broader investment portfolio. It could sit well alongside a UK equity fund that focuses on companies expected to grow earnings at a more consistent pace.

Our view on the sector

The UK stock market is home to lots of world-class companies. From international giants to a diverse array of smaller businesses. This provides a rich hunting ground for fund managers in this sector. They all try to grow investors' money over the long term, but each goes about it in a different way. Some focus on larger companies in the FTSE 100 index, others invest in medium-sized or smaller companies, and some have the flexibility to invest in any company, regardless of size. Some aim to match or deliver a return similar to the broader UK stock market. Others have the freedom to try and make as much money as possible for investors and take more risks. That could mean investing in only a small number of companies, for instance. A fund that invests in UK shares is normally the first port of call for UK-based investors. But with such a variety on offer, investors should make sure a fund is right for their circumstances before investing.

Performance Analysis

The manager's value-focused investment approach has been out of favour in recent years. Investors have generally preferred to invest in companies that can grow earnings more consistently, otherwise known as 'growth' stocks, rather than those that remain unloved for a while but could potentially deliver handsome returns at a later date. The manager's investments in companies sensitive to the health of the UK economy haven't paid off either, as many investors preferred companies with more overseas earnings.

The manager's longer-term track record though, which includes his time spent managing the Fidelity UK Smaller Companies fund, is positive. Past performance isn't a guide to the future.

Investment Philosophy

Alex Wright adopts a contrarian investment approach. He looks for diamonds in the rough: companies that have had a tough time and been overlooked and undervalued by other investors, but with the potential to recover.

Process and Portfolio Construction

Wright invests in large, medium-sized and higher-risk smaller companies that often go ignored by other investors. Maybe they've missed a profit target, or the management team made some unpopular decisions. Either way, the company must be on the road to recovery. A company can recover in a variety of ways, such as introducing a new product line, expanding into new areas or hiring a new management team.

Corporate strategy plays an important part in a company's recovery so the manager spends lots of time meeting company managers. He also meets the clients and suppliers of the companies he invests in to better understand how the company does business.

As the company improves, its share price should rise as other investors begin to recognise the change. As the price rises, Wright gradually takes profits and moves on to the next unloved opportunity. It's an investment style known as 'value' investing. Of course, not every company will recover and some could fail altogether.

Sheltering the fund from stock market falls is an important part of the manager's investment process. He focuses on companies where he thinks further losses should be limited, so tends to invest in companies with plenty of assets, a secure revenue stream or high barriers to entry from competition.

The manager has the flexibility to invest in derivatives which, if used, adds risk.

question mark Manager Track Record Based on HL Quantitative Research

  • Fidelity UK Smaller Companies...
  • Fidelity Special Situations A Acc
  • IA UK Smaller Companies
  • IA UK All Companies
FROM: TO:


Source: Refinitiv Lipper

Fund Track Record

22/11/19 to 22/11/20 22/11/20 to 22/11/21 22/11/21 to 22/11/22 22/11/22 to 22/11/23 22/11/23 to 22/11/24
Annual return -11.90% 29.03% 0.00% 2.93% 18.60%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Fidelity was founded in 1969 and established a presence in the UK in 1979. It provides asset management services to investors all over the world, offering investors a solid combination of local expertise and international strength.

Fidelity is privately owned, and its independence allows it to continue focusing on the long-term interests of investors. In the UK Fidelity manages a range of funds catering to the needs of all types of investors, whether primarily interested in equities or fixed interest.

Information about the fund

Fund manager biography

Manager Name: Jonathan Winton
Manager start date: 3 February 2020
Manager located in: TBA

Jonathan Winton has over 7 years investment experience. He joined Fidelity as an analyst in 2005, and has since covered pan European Support Services, Small Cap Technology and Beverages & Tobacco. He was promoted to co-portfolio manager in February 2013, and is currently enrolled in Fidelity's PM academy. Jonathan graduated from University of Nottingham with a degree in Politics.

manager photo
Manager Name: Alex Wright
Manager start date: 1 January 2014
Manager located in: London

Alex Wright joined Fidelity in 2001 as a research analyst and followed the traditional Fidelity approach to becoming a Portfolio Manager. He began his career as a pan-European equity analyst, rotating across a number of different sectors. In 2007, he chose to focus on UK equities, initially as a UK small cap analyst. As an analyst, he worked closely with both Anthony Bolton and Sanjeev Shah, the two previous managers of the Fidelity Special Situations and Fidelity Special Values PLC strategies. Alex began running client assets in 2008 with the launch of the Fidelity UK Smaller Companies Fund. In 2010, he broadened his remit to the full market cap spectrum, began working more closely with Sanjeev Shah on the Fidelity Special Situations Fund and launched an internal all cap portfolio. In September 2012, Alex took over the Fidelity Special Values PLC investment trust from Sanjeev Shah and in January 2014 the Fidelity Special Situations Fund. Alex graduated from Warwick University with a 1st class Honours degree in Economics and is a CFA Charterholder.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now