The key themes driving a turnaround for Fidelity's Shah

Fidelity's Sanjeev Shah has revealed a series of short positions in miners, coupled with a spate of M&A activity and a play on the banks, have lifted his fund into the top quartile in the last year.

The £2.3bn fund, which had previously struggled to match the record under former manager Anthony Bolton, is now back among the top performers in the IMA UK All Companies sector following an impressive run so far this year. Strong gains in 2012 mean in the last 12 months Shah's fund has returned 20.4%, against a sector average of 15.6%. Shah, who took over the fund in 2008, said his overweight banks position - including Lloyds, HSBC and RBS - had been one of the main drivers of returns. Although the banks remain well below share price peaks seen in 2008 and are unlikely to return to...