Mid-cap move boosts Fidelity Special Sits tracking error to a five-year high

Fidelity's Shah ups exposure to mid-cap stocks as annualised tracking error reaches highest point since 2004

The tracking error on Fidelity’s flagship Special Situations fund has reached a five-year high as manager Sanjeev Shah boosts his exposure to mid-cap stocks. Fidelity Special Situations had a three-year annualised tracking error of 9.56 against its FTSE All Share benchmark in February, the highest since August 2004. Shah says this is largely due to a rise in the fund’s mid-cap weighting from 26% to 31% over the past year, with three FTSE 250 companies currently in its top 10 holdings – Logica, PartyGaming and Premier Farnell. In contrast, Shah’s predecessor Anthony Bolton had a tra...