Fidelity's Alex Wright: Private markets are 'biggest value bubble'

Unusually high valuations

While other investment trust managers are rushing to utilise their ability to invest in private markets, Alex Wright, manager of Fidelity Special Values trust, believes this area represents “the biggest bubble in value”.

This year several investment trusts have been putting forward proposals to shareholders that would allow them to increase their already hefty exposures to unlisted companies, including Baillie Gifford UK Growth trust, Baillie Gifford European trust and Fidelity China Special Situations. Wright currently has capacity to invest 5% of the trusts assets under management into unlisted companies. However, he only has one holding that comprises roughly three basis points of the trust, which was formerly listed. "I think it is a really bad time to be investing in private markets," he said. "B...