Fidelity launches global long short fund in Australia
Fidelity has launched its latest global equities fund, the Fidelity Global Long Short Fund.
Managed by London-based portfolio manager Dmitry Solomakhin, the actively managed fund will adopt a long short strategy with around 45–55 long and 25–35 short positions, and is managed on an unconstrained and benchmark unaware basis.
The fund aims to achieve a return in excess of the MSCI All Country World Index NR (ACWI), after fees, over a minimum suggested time frame of seven years.
Fidelity said it will be suitable for use as a satellite allocation for those investors seeking capital growth with a high risk tolerance.
Fidelity managing director Lawrence Hanson said the launch of the fund in Australia comes as a response to growing client demand for an alternative to traditional global equities strategies.
“We have seen increased interest from clients who are looking to generate higher levels of returns, and who are comfortable taking on the risks and elevated volatility that comes with a strategy like the Fidelity Global Long Short Fund,” he remarked.
“We already offer a range of products and investment choices for Australian investors, and this fund expands the Fidelity offering in Australia, providing investors with further access to our global investment capability,” Hanson added.
Solomakhin said: “This fund will apply a contrarian value approach to investing and will seek out opportunities that differ from the prevailing market sentiment.
“This approach requires rigorous research and strong conviction in the face of opposing views. It’s driven by fundamental research that invests in out-of-favour securities which are significantly mispriced due to structural and/or cyclical concerns. Opportunity also lies in using short exposure to benefit from stock price falls.
“In the current climate of market stress, with investors contending with inflation, tightening monetary policy and growth headwinds, there is an abundance of fear. This environment creates a rich pool of contrarian investment opportunities.”