Bestinvest says
This fund is true to the Fidelity spirit it that it's manager, Tom Ewing, follows a pragmatic and research intensive process to selecting stocks. However, given his relative inexperience as a fund manager and the fact that we have higher conviction with other UK equity managers we suggest holders switch to one of our rated UK funds that have a large and mid cap flavour. Funds to consider include, JO Hambro CM UK Opportunities and M&G Recovery.
The manager selects companies according to where he thinks that valuations understate the a companies potential growth and where the manager views that a share provides 'something for nothing'. In the case of the latter this is where he feels that stocks are fair value but ignore, for example, a new drug patent that would dramatically change a companies earnings outlook. In both cases the manager feels that stocks are often defined by a single key factor.
Additionally the manager is true to Fidelity's stock picking style as he aims to achieve a unique insight; therefore company visits and utilisation of industry consultants is a key part of the process. Quantitative methods are not greatly utilised.
There is no formal universe for the fund, however, investments will be focused on large and mid cap stocks. The manager aims to add value from stock picking rather than sector rotation. Naturally Fidelity's analytical base is an important contributor as our the manager's colleagues on the UK team.