Fidelity International is to launch a British equities fund, which will invest at least 80% in smaller companies.
Alex Wright, who has been managing an institutional version of the fund since 2008, will focus on companies that have underperformed, but where he sees value in potential change.
Wright will seek companies where he expects further downside to be both quantifiable and limited. He intends to deliver outperformance across different market environments by building a portfolio of stocks that are in different stages of their recovery process. (article continues below)
He will typically hold about 100 stocks, with the largest stock position to be about 4% of the fund. In addition, he may invest up to 20% of the fund in mid and larger cap companies.