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Fidelity Special Values: ready for a rotation

Value funds could win big if cyclical stocks see further improvements
Fidelity Special Values: ready for a rotation
  • With light at the end of the tunnel for economically sensitive stocks, investors might be mulling value funds once more
  • We look at one of options – but stress the risks still in play
226p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points
  • Exposure to unloved companies with a potential catalyst for improvement
  • A good option if a market rotation does occur
  • Balanced approach should offset some of the investment risks
Bear points
  • No guarantee that value investing will bounce back in a sustained way
  • The trust's shares could prove volatile

After several months of dismal performance, cyclical stocks may finally have glimpsed some light at the end of the tunnel. The news of two different vaccine breakthroughs – from Pfizer (US:PFE) on 9 November and Moderna (US:MRNA) just a week later – have triggered big price gains for economically sensitive groups including airline stocks, pub groups and some financials.

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