- Jones said the investment philosophy underlying the fund is a simple one, based off the belief that Fidelity’s fundamental analysis can identify companies that are likely to outperform and underperform.
- “My job is to extract the alpha from Fidelity’s research team - which is made of up of 130 analysts covering 2,500 stock ideas - and deliver it in a highly stock specific portfolio,” he said. “We buy the stocks where we have high conviction on the positive side, and we short the stocks where we have high conviction on the negative side.”
- Jones said his job is to capture the spread between these two buckets of stocks, while at the same time neutralising any kind of beta market timing, style, country or sector risk.
- “We are not trying to be bullish or bearish on the market,” he said. “We are purely focusing on the spread between our buy ratings going up, and our sell ratings that go down against their relevant markets.”
- The fund typically holds about 150-200 stocks, which are roughly split between long and short positions. Jones noted that this breadth is important because while it keeps the portfolio diversified, it remains focused on Fidelity’s highest-conviction research ideas.
- “The fund is active, but in a disciplined way,” said Jones. “We typically rebalance periodically and also make ad hoc changes when analyst ratings, alpha scores or risk-reward profiles change. There are no automatic trading triggers. Every trade needs to make sense both quantitatively and qualitatively, and we are always mindful of liquidity and transaction costs.”
Number of holdings
150-200 stocks
Source: Fidelity International, 31 May 2026
Number of analysts
Source: Fidelity International, 31 May 2026