The key sectors powering ahead

SPEACIAL SITs

Alex Wright, portfolio manager of the Fidelity Special Situations fund, explains where he is positioned in his fund in today's bull market, and why.

As a contrarian value investor, I look for unloved companies entering a period of positive change which has not been recognised by the market. Investing in such companies tends to give an asymmetric return profile, as the worst case is already factored into the share price, and upside is significant if a turnaround can be achieved. I will tend to find ideas in areas where there is a lot of diversity, and where things can change rapidly. Examples include the financials, media and retail where there are very different business models with very stock-specific drivers. Representation acr...