Alex Wright, manager of Fidelity Special Values (FSV) and Fidelity Special Situations Fund (GB00B88V3X40), believes the best way of making money is to go against the consensus.
In this interview, he tells Mary McDougall how he seeks to identify mispriced assets, what he has been buying and selling recently and in what sectors he sees the best opportunities. He also explains how he mitigates the challenges faced by value investors. The interview was recorded on 8 December.
Read the written version here.
Timestamps:
00:00 - Intro
00:55 - What did you learn from Anthony Bolton?
02:17 - Investing style
03:33 - Process for spotting mispriced assets
04:33 - How intangibles affect thinking
05:23 - Avoiding value traps
07:23 - Turnarounds
08:50 - Recent fund performance and current outlook
11:24 - What have you been buying and selling recently?
14:17 - Inflation impact
17:42 - Fund turnover
19:10 - Challenge of needing lots of investment ideas
20:09 - Need for a large portfolio
21:54 - Pricing methodology
24:39 - When to sell when stocks don't rerate as you hoped?
30:06 - Why small caps hold better value
31:44 - Liquidity problems in funds?
34:13 - Volatility vs risk
36:13 - M&A
39:10 - UK vs European markets
41:38 - UK holdings you're excited for
