FidelityNow: Fidelity Global Small Cap Opportunities Fund highlighted by RBC

[00:00:04.404] Hello, I'm Chris Maludzinski.

[00:00:05.972] I'm Connor Gordon, and we are the portfolio managers of the Fidelity Global

[00:00:09.309] Small Cap Opportunities Fund.

[00:00:11.011] We're very excited for our fund to be featured by RBC's mutual fund research

[00:00:15.115] team in their latest edition of the GIST.

[00:00:17.717] For those of you that are not familiar with the strategy, Fidelity Global Small

[00:00:20.854] Cap Opportunities was launched in 2019 as a global, go anywhere,

[00:00:24.891] best ideas portfolio to use Fidelity's global research platform

[00:00:28.962] to build a concentrated, high performing fund for investors.

[00:00:32.265] The strategy is based on three pillars: quality, inflection points, and

[00:00:36.369] concentrated risk management.

[00:00:38.571] We search globally for profitable, predictable, growing businesses that are

[00:00:41.508] undergoing an inflection point, which allows us to underwrite higher earnings,

[00:00:45.378] higher multiples, and ultimately, higher stock prices.

[00:00:49.149] When we refer to inflection points, we're referring to both thematic and

[00:00:52.419] idiosyncratic change. For instance, thematic inflection points refer to changes

[00:00:56.523] in technology, consumer behaviour, government policy, and industry

[00:01:00.493] supply-demand dynamics.

[00:01:02.462] Idiosyncratic inflection points refer to changes in strategy, management,

[00:01:06.566] and corporate restructuring and short-term price dislocations.

[00:01:10.170] We package our best ideas into a relatively concentrated 60-80 stock portfolio

[00:01:14.407] designed to generate a high tracking error, alpha generative fund for

[00:01:18.545] investors.

[00:01:19.879] We think today is a particularly good time to consider adding both global and

[00:01:23.750] small cap exposure to your portfolios.

[00:01:26.052] As the market has become increasingly narrow in recent months, returns have

[00:01:29.255] refocused in U.S. mega caps.

[00:01:31.891] This has re-introduced significant concentration risk across geography, market

[00:01:35.962] cap, and sector, specifically technology.

[00:01:38.631] We would highly suggest investors consider expanding their opportunity set and

[00:01:42.535] diversifying their exposure outside the current market leadership.

[00:01:46.005] If you're interested in learning more about the fund, please reach out

[00:01:48.500] to your Fidelity sales team.