Investment firm introduces first liquid-alt offerings along with diversified global equity strategy
The three alternative mutual funds, aimed at retail investors that want to go beyond long-only investing, include:
- Fidelity Global Value Long/Short Fund – managed by Dan DuPont, is designed to provide long-term capital appreciation primarily through investments in long and short positions of equity securities from issuers around the world. It may use leverage through short-selling up to 50% of its net asset value and by investing in derivatives, subject to certain limits;
- Fidelity Market Neutral Alternative Fund – managed by Brett Dley, it aims to provide long-term capital appreciation with low correlation to major equity markets. The fund invests primarily in long and short positions of equity securities from Canada- or U.S.-domiciled companies, and it may use leverage through short selling up to 100% of its net asset value and by investing in derivatives; and
- Fidelity Long/Short Alternative Fund – managed by David Way, the fund also aims to provide long-term capital appreciation by investing primarily in long and short positions of equities issued by companies in Canada or the U.S. It may use leverage by short selling generally around 30% of its net asset value, and by investing in derivatives.
“2020 is proving to be a year of considerable volatility across a variety of markets. Interest rates are extremely low, and our clients are looking for differentiated solutions to help them navigate the markets,” said Kelly Creelman, senior vice president, Products, Fidelity. “Our new offerings provide a broader opportunity set for investors seeking returns and diversification benefits beyond traditional ‘long-only’ products.”
Fidelity has also launched the Fidelity Long-Term Leaders Fund, which targets long-term capital growth primarily through investments in equity securities of companies anywhere in the world that have above-average potential for long-term growth and are determined to be industry leaders.
Also available in a currency-neutral version, the fund uses quantitative techniques to identify companies that possess hallmarks of current or future industry leadership and prospects of durable multi-year earnings growth. It is supported by a team of eight experienced portfolio managers, who focus on finding companies with sustainable competitive advantages and strong management teams, as well as industries with attractive characteristics such as strong growth potential, secular and emerging trends, and low competition or industry rivalry.
“Fidelity has a long history of developing and offering strong investment products that meet the demands of advisors and can help fulfill investors' financial goals,” Creelman said. “This Fund is what Fidelity seeks to do best: generate long-term value through bottom-up fundamental research.”