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Fidelity Special Situations Class W - Accumulation (GBP)

Sell:3,701.00p Buy:3,701.00p Change: 4.00p (0.11%)
Prices as at 18 October 2019
Change: 4.00p (0.11%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 18 October 2019
Change: 4.00p (0.11%)
Prices as at 18 October 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
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 does not feature on our Wealth 50 list of what we believe are the best funds in each sector. If a fund is not within our Wealth 50 this is not necessarily a recommendation to sell. However, if you are thinking of adding to your investments we believe Wealth 50 funds are superior alternatives. View funds on the Wealth 50 »

Alex Wright has delivered stronger performance than the broader UK stock market over the long run. In this fund he invests in companies of any size, but we think he's been most successful investing in smaller and medium-sized businesses. They're higher risk than larger firms though. He also invests a portion of the fund overseas.

The fund isn't on the Wealth 50 list of our favourite funds. There are lots of outstanding fund managers in the IA UK All Companies sector, which are available at lower cost than this one.

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

Alex Wright has managed the Fidelity UK Smaller Companies Fund (now closed to new investors) since February 2008. It's done extremely well under his management. We put this down to his ability to invest in companies with outstanding prospects. He took responsibility for the Fidelity Special Situations Fund in January 2014 and performance has been good so far. This isn't a guide to the future though. We think most of the fund's performance will continue to be driven by investments in small and medium-sized firms.

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

Alex Wright looks for companies that haven't done so well in the short term, but have some redeeming features that means they could do better in future. For example, they should be in good financial health and do something that differentiates them from the competition, like a unique product or service. This potential could be noticed by other investors in future.

The manager has the help of Fidelity's analysts and meets company management teams to help find these unique companies. When he finds one, he'll usually make a small investment and build it up over time as his conviction grows.

He can also benefit from falling share prices by using derivatives, although this is a higher-risk approach.

question mark Manager Track Record Based on HL Quantitative Research

  • Fidelity Special Situations A Acc
  • Fidelity UK Smaller Companies A Acc
  • FTSE All-Share TR
  • FTSE Small Cap (X It) TR

Fund Track Record

18/10/14 to 18/10/15 18/10/15 to 18/10/16 18/10/16 to 18/10/17 18/10/17 to 18/10/18 18/10/18 to 18/10/19
Annual return 17.65% 12.75% 16.98% -1.40% 3.38%

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

Alex Wright has 10 years investment experience. He joined Fidelity as an analyst in 2001 and was promoted to portfolio manager in February 2008. Alex had previously run an internal European financials pilot fund (For 6 months in 2006) and the predecessor to UK Smaller Companies, a UK small cap pilot fund, for 8 months from mid 2007 until March 2008. He also manages a Fidelity pilot fund (AUM $1m) benchmarked vs the FTSE All Share index. Alex graduated from Warwick University with 1st class HoNours degree in EcoNomics in 2001 and 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 an ISA, Lifetime ISA, SIPP or Fund & Share Account