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Fidelity's Funds European Special Situations Fund

Fidelity’s Funds European Special Situations Fund takes an active and unconstrained investment approach, allowing fund manager Parus Shah to explore the wealth of opportunities across core European markets, emerging Europe and beyond.
FF European Special Situations Fund, an unconstrained high alpha fund
Key fund information
  • Portfolio – a relatively concentrated portfolio of 40-50 stocks that have no sector, geographical or market cap biases. This blended approach eliminates any value or growth bias
  • Investment style - the fund manager is a bottom-up stockpicker and uses a fundamental and systematic investment process
  • Tracking error - the fund has an expected tracking error of 5-9%
  • Extended frontiers - the fund manager can go beyond the MSCI Europe benchmark into emerging Europe, but believes that to invest in this area it needs to be significantly cheaper than ‘core’ Europe
  • Beyond Europe - the fund manager can, subject to regulatory constraints, invest a portion of the fund in non-European stocks
  • UCITS III - the fund has full powers, allowing the fund manager to use derivatives on an opportunistic basis

Parus Shah's investment style

Parus has covered a number of European equity sectors during his nine years at Fidelity and has managed internal funds invested in UK and European equities. He has also gained valuable experience of the use of derivatives in portfolio management, having worked on Fidelity’s active extension product.

 

Parus evaluates companies within industries and screens for valuations using the following steps:

  • analysis of the overall attractiveness of an industry
  • analysis of the industry’s value chain and the company’s position within it, anticipation of possible shifts within the value chain and evaluation of individual company strategy. This analysis can generate other investment ideas
  • a fundamental approach to valuing the company, with particular attention to scarcity value. He always has an entry and exit price and is as disciplined as possible in using these

 

For more information on the FF European Special Situations Fund, please contact your local Fidelity sales representative.