Fidelity's Wright ups position in 'hidden defensives' in Special Situations fund

Rise in value prompted move

Fidelity Special Situations manager Alex Wright has increased his weighting to "hidden defensive" stocks to its lowest ever underweight position as he believes value is returning.

Wright, who manages the £3.1bn Special Situations fund and £702m Special Values investment trust, said he had started to see value emerge in defensive names. This is a turnaround from when his fund was focused on cyclical names such as financials which he is now selling. "We like hidden defensive stocks which are looking attractive such as defence, which is 5.5%, and distribution companies which are 4.25%. "We are still 5% underweight in defensive names but this is the lowest underweight we have had in the firm's tenure. "But the bond proxy stocks such as Diageo, Unilever and Re...