FidelityConnects: Introducing Fidelity Global Opportunities Long/Short Fund

00:10.440 --> 00:12.200
Hello, and welcome to Fidelity Connects.

00:12.200 --> 00:15.560
I'm Pamela Ritchie. Markets don't move on facts alone,

00:15.560 --> 00:18.640
of course. They move on narratives.

00:18.640 --> 00:21.720
And our next guest today, our guest today say

00:21.760 --> 00:24.720
that some of the best investment opportunities emerge when

00:24.720 --> 00:26.680
those narratives are wrong.

00:26.680 --> 00:29.760
They believe that change creates opportunity, whether

00:29.760 --> 00:32.840
that's driven by geopolitics, technology,

00:32.840 --> 00:35.120
or evolving global supply chains.

00:35.160 --> 00:38.160
With the launch of Fidelity Global Opportunities Long Short

00:38.160 --> 00:41.440
Fund, they're bringing that philosophy to life through

00:41.480 --> 00:44.720
an alternative strategy that can help navigate changing

00:44.760 --> 00:47.560
conditions across market cycles.

00:47.600 --> 00:50.640
And behind their strategy is a partnership of more than 15

00:50.640 --> 00:52.880
years in the making. We'll get into that.

00:52.880 --> 00:56.400
Joining us here today to introduce Fidelity's latest product,

00:56.400 --> 00:59.440
Fidelity Global Opportunities Long-Short Fund,

00:59.480 --> 01:02.640
are the portfolio managers, Max Adelson and Nick

01:02.680 --> 01:04.000
Belmere. Welcome to you.

01:04.040 --> 01:06.080
Great to see you both. Thank you, Pamela.

01:06.080 --> 01:08.240
Delighted to have you here today.

01:08.240 --> 01:10.240
We'll invite everyone to send questions in over the next

01:10.280 --> 01:13.400
little bit. Okay, let's talk about this 15 years in the

01:13.400 --> 01:15.160
make, so you met...

01:15.160 --> 01:17.120
Where? You've been working here for a while because I've seen

01:17.120 --> 01:19.200
you both here, but what about before that?

01:19.240 --> 01:22.760
Well, my involvement with the stock market started even

01:22.800 --> 01:24.320
before a partnership.

01:24.320 --> 01:27.200
I was interested in stock markets really early, but my first

01:27.200 --> 01:29.960
stock when I was 14 and...

01:29.960 --> 01:33.360
14? Yes, yes. I read every book I could find about it.

01:33.400 --> 01:35.640
One that stood out was Peter Lynch.

01:35.640 --> 01:38.000
He had this line, go find a great business that's growing,

01:38.000 --> 01:40.080
but that's in a really boring industry.

01:40.120 --> 01:43.520
And I took that to heart and found a little collision repair

01:43.520 --> 01:46.840
shop chain based in Winnipeg, 100 million market cap.

01:46.880 --> 01:50.440
And I called the CFO with a couple of questions and he,

01:50.480 --> 01:52.240
you know, to my surprise, he took the call.

01:52.280 --> 01:54.000
I think he was excited.

01:54.040 --> 01:55.600
Someone was interested by the company.

01:55.640 --> 01:58.640
Little did he know I was a student with a hundred dollars to

01:58.680 --> 02:01.440
invest. But I really like what I heard.

02:01.440 --> 02:04.360
I bought the stock and this turned out to be my first and

02:04.400 --> 02:07.080
only so far a 30 bagger.

02:07.120 --> 02:09.480
So that was a big winner.

02:09.480 --> 02:11.040
And I was hooked.

02:11.040 --> 02:13.560
You know, since then, my quest to find the next big winner in

02:13.560 --> 02:15.520
the stock market has never stopped.

02:15.560 --> 02:18.640
And along the way, it's brought me, as you mentioned, to...

02:18.640 --> 02:21.800
McGill study finance and that's where I met

02:21.800 --> 02:26.000
Max and you know, Max, how did you end up at McGill?

02:26.040 --> 02:27.800
It works really hard in second grade.

02:29.000 --> 02:32.600
Well, when I was young I loved meteorology.

02:32.600 --> 02:35.080
I loved the weather. I followed it.

02:35.120 --> 02:38.200
I was a nerd. And I decided to go to McGill to

02:38.240 --> 02:39.960
be a meteorologist.

02:39.960 --> 02:42.600
And it was there that I discovered that the weather and

02:42.600 --> 02:44.400
investing have a lot in common.

02:44.400 --> 02:47.720
They both involve analysing lots of data and they both

02:47.760 --> 02:49.840
involve forecasting.

02:49.840 --> 02:52.960
So I decided to switch from science to management.

02:52.960 --> 02:55.240
And that's where I met Nick and Pamela.

02:55.240 --> 02:58.480
I very intimidated by Nick here, because as

02:58.480 --> 03:01.600
he's been saying, he was investing for a long period of

03:01.600 --> 03:04.760
time, he had bought and sold many stocks, he has his own

03:04.760 --> 03:07.800
investment blog called Bourse Investir that I started

03:07.800 --> 03:10.920
to read, and he was a member of all the investment clubs

03:10.920 --> 03:12.680
across campus. So.

03:12.720 --> 03:14.480
How many were there across campus.

03:14.480 --> 03:16.280
There must have been three or four.

03:16.280 --> 03:17.720
He was involved everywhere.

03:19.040 --> 03:22.280
Everyone knew Nick and so I decided that I

03:22.280 --> 03:25.400
wanted him to be one of my mentors and I followed him

03:25.400 --> 03:28.240
into the investment management programme at McGill.

03:28.240 --> 03:31.280
That was the student-run programme called Days

03:31.280 --> 03:34.120
Hotel Capital Management. We had two million dollars to

03:34.120 --> 03:36.320
invest with a global mandate.

03:36.320 --> 03:39.880
We got to travel the world together to meet our investors

03:39.880 --> 03:42.960
and talk about what we were doing in the

03:42.960 --> 03:44.320
fund. And uh...

03:44.360 --> 03:46.120
This is all, like, still in university.

03:46.120 --> 03:48.120
This was still in university.

03:48.120 --> 03:51.280
Nick decided to take that experience and start with a summer

03:51.280 --> 03:54.320
internship at Fidelity. I followed him for full-time.

03:54.320 --> 03:56.160
That was in 2012.

03:56.160 --> 03:59.280
We've spent 10 years together as analysts here covering

03:59.280 --> 04:02.800
different sectors from financials to healthcare to technology

04:02.800 --> 04:06.440
and in 2023 we had the opportunity to

04:06.440 --> 04:09.560
start with the blank sheet of paper, a new mandate, and

04:09.560 --> 04:12.360
it brought us full circle to what we started with, something

04:12.360 --> 04:15.480
global. This time we're supported by

04:15.480 --> 04:17.640
massive infrastructure here at Fidelity.

04:17.640 --> 04:21.120
We have an incredible research team, great peers,

04:21.120 --> 04:24.800
and we have the opportunity to work together again for

04:24.800 --> 04:26.360
our investors.

04:26.360 --> 04:29.240
Fantastic. OK, so tell us a little bit about this fund.

04:29.280 --> 04:32.400
Nick, let's begin with you. So it's a long short fund.

04:32.440 --> 04:35.600
You can put your great ideas to work in the long side of

04:35.600 --> 04:38.720
things, and those that you put in the basket

04:38.760 --> 04:40.840
actually go into the short side of it.

04:40.880 --> 04:42.680
Is it a 130-30?

04:42.680 --> 04:44.880
How does that work? Give us some of the deets here.

04:44.880 --> 04:47.440
Perfect. Yeah, global long short strategy.

04:47.440 --> 04:49.000
Let's break it down.

04:49.000 --> 04:51.560
So the first thing to keep in mind, and we really see this as

04:51.560 --> 04:54.600
an equity strategy, we tend to run with a fairly high net

04:54.600 --> 04:57.800
exposure. So you asked long and short, we've typically

04:57.800 --> 05:01.680
run about a hundred percent long and 35%

05:01.680 --> 05:03.520
short and in those areas.

05:03.520 --> 05:06.720
So we believe having a net a high net

05:06.720 --> 05:09.880
exposure is important because the stock market

05:09.880 --> 05:11.920
is the best way to compound wealth over time.

05:11.920 --> 05:15.040
But obviously we do it very differently from an index

05:15.040 --> 05:17.840
fund or even a traditional long only fund because we can

05:17.840 --> 05:20.960
benefit not only from stocks going up on the long side,

05:20.960 --> 05:23.800
but also capitalise on stocks going down in the short

05:23.800 --> 05:26.680
portfolio. And we found that's been a differentiated source

05:26.680 --> 05:28.600
of return, it adds to our returns.

05:28.600 --> 05:31.640
And it has also buffered some of the volatility in the

05:31.640 --> 05:32.480
choppy market.

05:32.480 --> 05:34.920
Interesting. Okay, so it's been in a pilot stage for the

05:34.920 --> 05:36.840
last, how many years?

05:36.880 --> 05:37.280
Three years.

05:37.280 --> 05:40.640
Three years. Okay, can you tell us a little bit about the

05:40.640 --> 05:43.520
performance? I mean, it's been a wild three years, how is it

05:43.520 --> 05:44.320
done?

05:44.320 --> 05:47.560
So fortunately, we've had very strong performance over the

05:47.560 --> 05:50.000
three years of the pilot. We've managed to outperform our

05:50.000 --> 05:53.480
benchmark, the MSCI world with lower volatility.

05:53.480 --> 05:56.640
Now in 2023, it started, it wasn't the easiest

05:56.640 --> 05:59.160
start. In hindsight, I think it was the best thing that could

05:59.160 --> 06:01.200
have ever happened to us.

06:01.200 --> 06:03.920
For the first few months we were trailing and it forced Nick

06:03.920 --> 06:07.200
and I to dig deep and reflect on what we wanted to

06:07.200 --> 06:09.960
keep the same and what we want it to change and how we were

06:09.960 --> 06:11.960
gonna work best together.

06:11.960 --> 06:15.200
What we decided to do was double down on our global

06:15.240 --> 06:18.240
research team and figure out where the very

06:18.280 --> 06:22.120
best ideas were on both the long and the short side.

06:22.160 --> 06:24.880
When portfolio managers interact with analysts, they often

06:24.880 --> 06:26.800
ask, what are your best ideas?

06:26.800 --> 06:29.320
Nick and I have the pleasure of also asking, what are you

06:29.320 --> 06:32.400
worst ideas? And we can put those to use in the

06:32.440 --> 06:35.640
portfolio. We also drew upon some of our prior

06:35.680 --> 06:37.280
experiences.

06:37.280 --> 06:40.000
Nick had the fortune of covering Valiant Pharmaceuticals,

06:40.000 --> 06:43.280
which was a very topical name in the Canadian market when

06:43.280 --> 06:45.000
he was an analyst.

06:45.040 --> 06:48.080
Those are the kind of situations where we find there are

06:48.080 --> 06:50.880
very interesting returns to be generated on both the long and

06:50.920 --> 06:53.440
the short side. Maybe Nick, you wanna share a little bit with

06:53.480 --> 06:56.440
us about what you learned during that period and how we put

06:56.480 --> 06:58.720
that to work in our portfolio.

06:58.760 --> 07:01.280
Are we talking about sort of the blow up of it eventually and

07:01.320 --> 07:03.680
how that ultimately works?

07:03.680 --> 07:05.840
Oh, and the Valiant story.

07:05.840 --> 07:09.240
Yeah, that was that was such an interesting experience so

07:09.240 --> 07:10.680
early in my career as well.

07:10.680 --> 07:12.920
Right. That was part of my first package.

07:12.920 --> 07:15.040
And that company was really interesting.

07:15.040 --> 07:17.760
CEO at a different view was a consultant.

07:17.760 --> 07:19.800
Farmer companies are spending too much on R&D.

07:19.800 --> 07:21.360
So, you know, I'll put that to work.

07:21.360 --> 07:24.520
I'll consolidate the industry, cut costs and print money.

07:24.520 --> 07:27.480
And he did essentially. I remember we made a lot of money on

07:27.480 --> 07:31.040
that stock. It went from $60 to $300 as he

07:31.040 --> 07:32.720
put that playbook to work right.

07:32.720 --> 07:35.560
But that story was starting to shift, right?

07:35.560 --> 07:38.600
We saw some of the red flags piling up, the leverage

07:38.600 --> 07:41.680
increasing, the business practises more aggressive, the

07:41.680 --> 07:42.680
accounting more creative.

07:43.760 --> 07:46.920
But one thing I've learned early is when the story has a lot

07:46.920 --> 07:49.920
of momentum like this, you don't want to get in the way too

07:49.920 --> 07:52.800
early. It's best to wait for a crack to emerge.

07:52.800 --> 07:55.160
And that crack, I remember, still emerged when the report

07:55.160 --> 07:58.520
came out, basically accusing them of fraud,

07:58.520 --> 08:01.560
spent a long night analysing all that, reading reports,

08:01.560 --> 08:03.760
calling pharmacies, regarding the management.

08:03.760 --> 08:06.920
And just realising the story that everybody

08:06.920 --> 08:09.280
was, you know, all the bulls were playing for was no longer

08:09.280 --> 08:10.720
valid. The story had cracked.

08:10.720 --> 08:13.640
And so we pivoted and shorted there at that stock.

08:13.640 --> 08:16.480
And we ended up making money both ways.

08:16.480 --> 08:18.720
Back then, we didn't have the shorting capabilities.

08:18.720 --> 08:22.120
If we did, that would be a prime example of a good story

08:22.120 --> 08:25.320
where you can completely change your view and

08:25.320 --> 08:28.440
be flexible. And when the facts change, move from

08:28.440 --> 08:31.200
a long position to a short position to capitalise on the

08:31.200 --> 08:31.400
other side.

08:31.400 --> 08:34.000
That's a very important point that Nick just mentioned.

08:34.000 --> 08:37.760
I had the benefit of sitting next to Nick during that period.

08:37.760 --> 08:40.640
It was incredibly impressive what you were able to do because

08:40.640 --> 08:43.120
Nick, with just one or two years of experience in the

08:43.120 --> 08:46.240
industry, had every single portfolio manager coming

08:46.240 --> 08:49.320
by daily to figure out what they should be doing

08:49.320 --> 08:52.400
with that stock. That was the focus of the Canadian

08:52.400 --> 08:53.920
market at the time.

08:53.920 --> 08:57.160
And what I saw was not just how well Nick manage

08:57.160 --> 09:00.360
the pressure of that, but how he changed his mind when the

09:00.360 --> 09:03.720
facts changed. And you're going to hear a lot about that

09:03.720 --> 09:06.800
in Global Opportunities Long Short, how we are able to change

09:06.800 --> 09:08.240
our mind when facts change.

09:08.240 --> 09:11.800
There's a lot going on out there right now that's shifting,

09:11.800 --> 09:14.640
and our job is to take advantage of that and find the

09:14.640 --> 09:16.080
opportunities.

09:16.080 --> 09:19.280
So you have been analysts at Fidelity for a long

09:19.280 --> 09:22.400
time, covering pretty much probably a complementary number

09:22.400 --> 09:24.800
of sectors and industries.

09:24.800 --> 09:26.520
They work mostly Canadian, though.

09:26.520 --> 09:27.520
Why a global fund?

09:29.440 --> 09:31.480
Yeah, that's a great question.

09:31.480 --> 09:34.120
For us, the mandate flex, when we thought about the ideal

09:34.120 --> 09:37.240
mandate, that flexibility to be able to take

09:37.240 --> 09:40.520
a thematic and go across the world to find the best risk

09:40.520 --> 09:42.920
reward opportunity was really appealing.

09:42.920 --> 09:46.160
Now, as you mentioned, our analyst experience was mostly in

09:46.160 --> 09:49.080
Canada, but we've done it across a variety of industry.

09:49.080 --> 09:52.200
In my opinion, some of the most complex, technically complex

09:52.200 --> 09:54.960
industries. So we've learned the nuts and bolts of the

09:54.960 --> 09:58.040
specifics of a commodity and a

09:58.040 --> 10:00.880
banking industry and technology and health care.

10:00.880 --> 10:04.080
And for the specifics, we can sit on the shoulder of the

10:04.080 --> 10:06.600
giant that is the Fidelity Research Engine.

10:06.600 --> 10:08.200
Yes. They can fill in the specific.

10:08.200 --> 10:11.320
Even a small company that I may find in

10:11.320 --> 10:13.640
Europe, we most likely have an analyst covering it.

10:13.640 --> 10:15.600
If he's not covering that one, probably a competitor.

10:15.600 --> 10:18.000
And he can easily help us set up a call.

10:18.000 --> 10:21.000
So we're plugged into what's happening around the world.

10:21.000 --> 10:24.120
But we really found the appeal of being able

10:24.120 --> 10:27.440
to have a mandate that allows us to bring best ideas

10:27.440 --> 10:28.440
across market cap.

10:30.080 --> 10:32.360
Geographies, sectors, both on the long and short side.

10:32.360 --> 10:35.680
Would you would you say there's a style to this fund

10:35.720 --> 10:38.800
particularly either value growth something in

10:38.840 --> 10:39.440
between?

10:39.440 --> 10:42.040
I'll talk about value and growth because it is important how

10:42.040 --> 10:44.200
we bring those into the portfolio.

10:44.200 --> 10:46.920
I just want to add on to a little bit of what Nick said and

10:46.920 --> 10:49.320
how we think about our mandate globally.

10:49.320 --> 10:52.080
We often ask ourselves the question, where is the best

10:52.080 --> 10:55.480
exposure for a certain thematic,

10:55.480 --> 10:57.840
certain world event that's playing out?

10:57.840 --> 11:00.920
So for instance, when AI started to become a

11:00.920 --> 11:04.080
very investable theme, we look to the supply

11:04.080 --> 11:05.480
chain in Asia.

11:05.480 --> 11:08.320
Because that's where a lot of innovation was happening.

11:08.320 --> 11:11.440
We found some of our biggest winners in Asia by applying

11:11.440 --> 11:13.880
our learnings here in North America.

11:15.200 --> 11:18.480
So you asked about long and short, you asked

11:18.480 --> 11:19.920
growth and value.

11:19.920 --> 11:23.120
So historically, Nick has tended to come with more of

11:23.120 --> 11:25.520
a quality growth approach to investing.

11:25.520 --> 11:28.360
He talked about that early example of the Auto Collision

11:28.360 --> 11:29.760
Repair Centre.

11:29.760 --> 11:32.600
I have tended to with more of a value centred approach.

11:32.600 --> 11:34.840
Okay. We found that...

11:34.840 --> 11:38.320
When an investment can tick both boxes,

11:38.320 --> 11:39.920
it can be very powerful.

11:39.920 --> 11:42.880
Nick, maybe you can tell us a little bit about one of them.

11:42.880 --> 11:45.800
Yeah, no, let me bring you to the ninth floor where we sit

11:45.800 --> 11:48.240
side by side every day and debate ideas.

11:48.240 --> 11:51.360
About a year ago, Max came into the office and pitched me

11:51.360 --> 11:52.920
a wind turbine company.

11:52.920 --> 11:55.560
So that's how we work. Before an idea gets in the portfolio,

11:55.560 --> 11:57.760
we convince the other that it's a good idea.

11:57.760 --> 11:59.760
And we do that for every stock.

11:59.760 --> 12:03.080
Now, when he came with this idea, I was like, this

12:03.080 --> 12:04.800
seems like a value trap to me.

12:04.800 --> 12:07.360
The industry has a terrible history of returns.

12:07.360 --> 12:09.840
And obviously, we hear the U.S.

12:09.840 --> 12:12.000
President, you know, is disliked of windmills.

12:12.000 --> 12:14.200
So how is this going to work, Max?

12:14.200 --> 12:17.360
Other than for the fact that the stock, yes,

12:17.360 --> 12:20.480
does cheap, it trades very cheap relative to its

12:20.480 --> 12:23.600
revenue. And then he started walking me through

12:23.600 --> 12:26.360
three or four, five things that were changing.

12:26.360 --> 12:28.880
Industry consolidating, bad contracts rolling up, pricing

12:28.880 --> 12:30.840
going up. And most importantly...

12:30.880 --> 12:32.280
Sorry, this is Canadian.

12:32.280 --> 12:35.560
That was a European company.

12:35.560 --> 12:38.720
Well, he found that in the research package that appealed to

12:38.720 --> 12:41.920
him. It's not something I would have been drawn to, but

12:41.920 --> 12:44.520
he told me on top of all these reasons, they're producing

12:44.520 --> 12:46.280
power and there's a power shortage.

12:46.280 --> 12:49.240
And then I put the picture together and I saw it, how this

12:49.240 --> 12:51.960
value stock could in a year or two be appealing to a growth

12:51.960 --> 12:56.040
investor. And we bought it, the stock has since doubled.

12:56.040 --> 12:59.440
It's still interesting, but it really shows

12:59.440 --> 13:02.520
the power of when we converge on an idea with our slightly

13:02.520 --> 13:05.640
different perspectives, it is a really powerful user.

13:05.640 --> 13:09.160
Does, I mean, the wind turbine, I

13:09.200 --> 13:12.360
guess where you're selling to in Europe wouldn't have come

13:12.360 --> 13:15.400
down because of the administration currently, would it have?

13:16.600 --> 13:19.800
So offshore wind has been impacted by the

13:19.800 --> 13:22.040
administration to some degree.

13:22.040 --> 13:22.720
But in Europe.

13:22.720 --> 13:26.240
But in Europe, it continues to go very strong.

13:26.240 --> 13:29.400
And as Nick was mentioning, the desire for more and

13:29.400 --> 13:32.880
more power for these data centres has been a thematic

13:32.880 --> 13:36.880
that originated in the United States, but is proliferating

13:36.880 --> 13:37.760
around the world.

13:37.760 --> 13:40.200
Would you say that that is actually a theme, something that

13:40.200 --> 13:42.400
originates in the United States but proliferates around the

13:42.400 --> 13:46.080
world? You go and look for where it takes hold in

13:46.080 --> 13:49.320
other countries, but it's a thematic that's been recognised

13:49.320 --> 13:50.840
as working already?

13:50.840 --> 13:54.200
That is one of our advantages as a global fund,

13:54.200 --> 13:57.440
is taking the learnings from one place and applying it

13:57.440 --> 14:00.160
to another. Some markets tend to lead.

14:00.160 --> 14:03.480
Often in technology, the United States tends to lead,

14:03.480 --> 14:06.560
often in manufacturing, innovation can come from

14:06.560 --> 14:10.080
elsewhere. We looked at places like China for

14:10.080 --> 14:12.920
innovation in machinery, as an example.

14:13.800 --> 14:16.840
<b>Hello, investors. We'll be back to the show in just a moment.</b>

14:16.840 --> 14:20.200
<b>I wanted to share that here at Fidelity, we value your opinion.</b>

14:20.200 --> 14:23.200
<b>Please take a few minutes to help us shape the future of Fidelity Connects</b>

14:23.240 --> 14:27.680
<b>podcasts. Complete our listener survey by visiting fidelity.ca/survey,</b>

14:27.680 --> 14:30.080
<b>and you could win one of our branded tumblers.</b>

14:30.080 --> 14:33.360
<b>Periodic draws ending by March 30th, 2026.</b>

14:33.360 --> 14:36.960
<b>And don't forget to listen to Fidelity Connects, the Upside, and French</b>

14:37.000 --> 14:41.000
<b>DialoguesFidelity podcasts available on Apple, Spotify, YouTube, or wherever</b>

14:41.040 --> 14:43.640
<b>else you get your podcasts. Now back to today's show.</b>

14:45.920 --> 14:49.160
Would you say that the next, let's

14:49.160 --> 14:51.280
talk a little bit about sort of cyclical stocks, how you take

14:51.320 --> 14:53.800
a look at some of the macro themes and just thematics

14:53.840 --> 14:56.880
generally. If AI is the main thematic, are you looking

14:56.880 --> 14:59.680
more at sort of the energy side of it at this stage?

14:59.680 --> 15:02.960
Is there kind of a commodity cyclical piece to

15:03.000 --> 15:04.920
the fund at this point?

15:04.920 --> 15:07.560
It's a thematic that will keep bringing us to different parts

15:07.560 --> 15:09.080
of the market.

15:09.080 --> 15:12.080
The picks and shovels, whether it's the data centre, the

15:12.080 --> 15:15.400
chips, and obviously the power has been very prevalent

15:15.400 --> 15:18.960
up to now. And it continues to be as the large

15:18.960 --> 15:22.040
model companies build larger and larger

15:22.040 --> 15:25.720
data centres and models that require more of that energy.

15:25.720 --> 15:28.720
So that keeps bringing us, it's brought us all around the

15:28.720 --> 15:31.040
world, you know, in Europe, in Korea, in Taiwan.

15:32.680 --> 15:35.640
In the United States, sometimes even short, you know, in the

15:35.640 --> 15:38.840
middle of all this hype for AI, we found some companies

15:38.880 --> 15:41.400
that get caught up in the hype and the fundamentals don't

15:41.400 --> 15:41.800
support it.

15:41.800 --> 15:42.200
Mm.

15:42.200 --> 15:45.240
Maybe Max, do you recall an example

15:45.240 --> 15:48.400
of a short we've had in the space that we've been able to

15:48.400 --> 15:49.040
benefit from?

15:49.040 --> 15:52.280
Yeah, Nick and I were talking about our past

15:52.280 --> 15:55.000
performance and one of the funny things that came up was that

15:55.000 --> 15:58.240
our best performer, as it related to artificial intelligence,

15:58.240 --> 16:01.320
was a European industrial company.

16:01.320 --> 16:04.520
And conversely, our best

16:04.520 --> 16:08.040
short performance was in a company that built servers

16:08.040 --> 16:11.320
for the purpose of AI and-

16:11.320 --> 16:12.960
Didn't you say it was in Silicon Valley?

16:12.960 --> 16:14.960
They were based in Silicon valley.

16:14.960 --> 16:18.160
Yeah, so- One day, Nick and I were reviewing the

16:18.160 --> 16:20.880
supply chain. We were going through what was changing, where

16:20.880 --> 16:22.800
these chips were being allocated.

16:22.800 --> 16:25.760
And what we discovered was a very interesting insight hidden

16:25.760 --> 16:29.440
in research coming out of our Taiwan office,

16:29.440 --> 16:32.520
where there was something called a

16:32.520 --> 16:35.680
golden sample, a special chip that

16:35.680 --> 16:39.680
would allow a company to have a head start on producing

16:39.680 --> 16:42.800
NVIDIA's latest clusters

16:42.800 --> 16:44.120
of GPUs.

16:44.120 --> 16:47.480
And the beneficiary of that

16:47.520 --> 16:50.520
market structure had this head start and

16:50.560 --> 16:52.040
was producing record results.

16:52.080 --> 16:54.480
They were growing very quickly with high margins and stocks

16:54.520 --> 16:56.520
going straight up.

16:56.560 --> 16:59.760
And by finding that insight that was hidden, we were

16:59.800 --> 17:01.160
able to take the other side.

17:01.160 --> 17:04.440
We were able to embrace the surprise of when

17:04.480 --> 17:07.040
that period of exclusivity came to an end.

17:07.040 --> 17:09.160
So it's kind of like NVIDIA with...

17:09.160 --> 17:12.640
Nvidia was going to need this particular type of server,

17:12.680 --> 17:14.640
and the market hadn't recognised that yet.

17:14.640 --> 17:18.040
So NVIDIA allocates to a server builder

17:18.040 --> 17:19.720
every generation.

17:19.720 --> 17:20.000
Of chips.

17:20.040 --> 17:23.720
Of chip. The server builder will take risk by

17:23.720 --> 17:26.800
agreeing to build with that chip before it has

17:26.800 --> 17:28.160
been commercialised.

17:28.160 --> 17:31.280
They're compensated for that risk with a

17:31.280 --> 17:32.600
period of exclusivity.

17:32.640 --> 17:35.680
That's what we were able to get from our research and

17:35.680 --> 17:37.680
that's what were able to ultimately employ.

17:37.720 --> 17:41.000
We took this piece of insight that we learned in Asia and

17:41.040 --> 17:42.160
applied it in the U.S.

17:43.240 --> 17:44.760
That's absolutely fascinating.

17:44.800 --> 17:48.080
So what is it you want Canadians to know about having

17:48.080 --> 17:50.040
access to international markets?

17:50.040 --> 17:52.120
Last year was a surprise.

17:52.160 --> 17:53.640
It was a massive success.

17:53.640 --> 17:56.320
It was the story of the year, certainly in terms of

17:56.320 --> 17:59.720
investment returns, that Europe took off and

17:59.760 --> 18:03.560
developed markets took off, EM took off.

18:03.600 --> 18:05.920
This is great for Canadians still.

18:05.920 --> 18:09.120
Is this an ongoing sort of global bullish market, do

18:09.120 --> 18:09.760
you think?

18:09.800 --> 18:13.000
I think it has some leg, and this is where really

18:13.000 --> 18:15.440
a flexible global mandate can shine.

18:15.480 --> 18:18.040
And a lot of global funds are still heavily invested in the

18:18.080 --> 18:21.200
U.S. We're not just jumping on this for the last, when

18:21.240 --> 18:23.800
we've been managing our pallets for the last three years,

18:23.800 --> 18:27.160
we've running a significant overweight to those

18:27.160 --> 18:28.560
international markets.

18:28.560 --> 18:31.720
And we still do. There's still a lot companies for similar

18:31.760 --> 18:34.800
comparables in terms of their quality and

18:34.840 --> 18:37.560
growth that are cheaper in the international market.

18:37.560 --> 18:40.760
And I think the appeal right

18:40.760 --> 18:44.840
now for a global long-shoring mandate is very high.

18:44.840 --> 18:47.960
Despite that some of these trends have started, the U.S.

18:48.000 --> 18:51.640
Market remains historically expensive and concentrated.

18:51.680 --> 18:54.720
You know, we have policy of deglobalization, which has

18:54.760 --> 18:57.960
pressured the U S dollar and brought flows in

18:57.960 --> 19:00.680
other parts of the world. And when you look at that

19:00.720 --> 19:02.880
leadership in the U.S., those...

19:02.920 --> 19:05.960
Mega caps that have been cash cows for so long their

19:06.000 --> 19:07.320
business models are pivoting.

19:07.320 --> 19:10.440
They're suddenly becoming capital intensive So, you

19:10.440 --> 19:13.960
know a lot of things changing in the world and

19:14.000 --> 19:17.040
you know weak us dollar tends to create bull markets and all

19:17.080 --> 19:20.240
sorts of areas that Investors had the luxury to

19:20.280 --> 19:22.800
ignore in the past 10 15 years, right?

19:22.840 --> 19:25.880
Commodities international stocks small caps and we're finding

19:25.920 --> 19:29.120
so many opportunities in all those those areas at

19:29.120 --> 19:32.240
the same time as you know there's pockets of fraud in the

19:32.240 --> 19:35.400
U.S. That gives us some interesting opportunities

19:35.400 --> 19:36.120
on the short side.

19:36.120 --> 19:39.120
There is a much-discussed broadening of the trade of the

19:39.120 --> 19:40.120
tape, essentially.

19:41.120 --> 19:44.280
So small and mid-cap are interesting.

19:44.280 --> 19:47.360
Are they... I guess just tell us a little bit more about

19:47.360 --> 19:50.400
that. Do you have the ability to go, in terms of cap size,

19:50.400 --> 19:51.400
anywhere?

19:51.720 --> 19:53.280
We do, yes.

19:53.280 --> 19:57.240
Okay, so we have an MSCI world benchmark,

19:57.240 --> 20:00.360
which means that we have to look at everything around the

20:00.360 --> 20:03.480
world. The largest constituents of that benchmark are

20:03.480 --> 20:04.440
large cap companies.

20:04.440 --> 20:06.800
It's about 6,000 companies there, is that the universe?

20:06.800 --> 20:07.160
In the MSU.

20:07.160 --> 20:10.280
In the MSCI world, around 2000, we have in

20:10.320 --> 20:13.520
our database, we're tracking about 6,000 companies.

20:13.520 --> 20:16.600
So we are spread out and the benefit

20:16.640 --> 20:19.920
of being spread out is that we can identify companies

20:19.920 --> 20:23.280
that are not just good, they're great.

20:23.320 --> 20:26.320
Nick is especially, he excels in

20:26.360 --> 20:29.200
this area. He can pick out companies that are going to

20:29.240 --> 20:32.480
differentiate. When we started this mandate, we

20:32.480 --> 20:35.120
looked historically at the returns in the stock market.

20:35.120 --> 20:36.960
We found that they are concentrated.

20:36.960 --> 20:39.760
It's only a handful of names that drive all of the

20:39.760 --> 20:42.320
outperformance versus the market over time.

20:42.520 --> 20:45.280
That helps us on the short side.

20:45.280 --> 20:48.480
But what we really need to do is identify the big winners on

20:48.480 --> 20:51.840
the long side. Fortunately, I have a partner here who has

20:51.840 --> 20:54.480
demonstrated an incredible track record of doing that.

20:54.480 --> 20:56.880
As Nick said, we are seeing...

20:56.920 --> 20:59.960
New pockets in the market open up, new bull

20:59.960 --> 21:03.000
markets. It's driven not just by AI, but

21:03.040 --> 21:05.120
we might get to talk about geopolitics.

21:05.120 --> 21:08.080
That's offered us some really interesting opportunities to

21:08.120 --> 21:11.560
pick winners in industries that were previously losers and

21:11.600 --> 21:13.040
now look a lot better.

21:13.080 --> 21:16.080
Is it linked to sort of the rebuilding of the world?

21:16.120 --> 21:20.000
Europe has a big rebuild burgeoning

21:20.000 --> 21:22.480
industry. It looks like, yeah, tell us a little bit about the

21:22.480 --> 21:25.120
geopolitical overhang, but where the opportunities are

21:25.120 --> 21:25.720
within.

21:25.720 --> 21:29.000
Right. It's easy to get caught up in the

21:29.000 --> 21:31.320
overhang or the pessimism, but it's creating new

21:31.320 --> 21:34.440
opportunities, industries that for a long time were

21:34.440 --> 21:37.800
perceived as long term losers or suddenly becoming

21:37.800 --> 21:41.080
winners. It can be both the supply and the demand dynamic.

21:41.080 --> 21:44.200
Right. Let's talk about European steel,

21:44.200 --> 21:47.400
for example, as was a very difficult industry for a long

21:47.400 --> 21:50.800
time, a high cost area to produce steel and

21:50.800 --> 21:52.760
not a tonne of local demand. But as you mentioned, And

21:52.760 --> 21:56.320
there's now a push to rebuild the domestic manufacturing

21:56.320 --> 21:57.960
capabilities, the defence sectors.

21:57.960 --> 21:59.280
Those are still intensive. Everything. Like, rebuild

21:59.280 --> 22:01.800
everything. Yeah. And they've had, like, a rate-cutting

22:01.800 --> 22:04.240
cycle. So we're seeing some cyclical impulse in different

22:04.240 --> 22:07.520
parts of the market. At the same time as they are taking

22:07.520 --> 22:11.320
a page from Trump's playbook in terms of protecting some

22:11.320 --> 22:14.320
strategically important industries, in which steel is one of

22:14.320 --> 22:17.360
them and they've imposed greater trade barriers,

22:17.360 --> 22:20.480
which allows some of the producers to capitalise not only

22:20.480 --> 22:22.000
in volume, but also in price.

22:22.000 --> 22:24.640
The narrative completely flipped there.

22:24.640 --> 22:27.440
So much has happened, you know, especially post-liberation

22:27.440 --> 22:30.640
day, which was really a turning point moment for the world,

22:30.640 --> 22:33.720
you know in terms of where we're going from, shifting

22:33.720 --> 22:36.800
35 years basically of globalisation into a new world,

22:36.800 --> 22:39.880
right? Like what are some of the opportunities we've seen

22:39.880 --> 22:41.280
maybe around that time frame?

22:41.280 --> 22:43.520
You have to move fast. It was only a week of really chefs.

22:43.520 --> 22:44.120
Yeah. Liberation Day.

22:44.120 --> 22:47.240
Liberation Day, it very much played into our strengths.

22:47.240 --> 22:50.280
And when we started this strategy, we talked about

22:50.280 --> 22:53.520
the benefits of having this, having two

22:53.520 --> 22:55.840
portfolio managers. We talked about benefits and the

22:55.840 --> 22:59.280
drawbacks. And we said, we wanted to have the agility of

22:59.280 --> 23:01.960
a single manager, the ability to move quickly.

23:01.960 --> 23:05.160
We didn't want to get caught up debating endlessly, but we

23:05.160 --> 23:07.920
wanted it to look thoroughly through ideas and check blind

23:07.920 --> 23:10.960
spots. That's what was on display during

23:10.960 --> 23:14.080
Liberation Day. So when we saw the reaction

23:14.080 --> 23:17.640
to Liberation Day, we saw a restriction of

23:17.680 --> 23:20.000
critical minerals exports from China.

23:20.000 --> 23:23.080
We were able to draw on previous experience

23:23.080 --> 23:26.240
in that industry where we had seen all of the players

23:26.280 --> 23:29.320
actually fail because the Chinese had a lower

23:29.360 --> 23:32.800
cost structure. And we saw who was coming into the industry.

23:32.840 --> 23:36.120
We very quickly communicated with our London and Australia

23:36.120 --> 23:39.560
offices. We identified the best player in

23:39.560 --> 23:42.600
that industry who had the best chance of success

23:42.600 --> 23:44.640
in a new world order.

23:44.680 --> 23:47.200
We were able to take a position quickly, that stock soon

23:47.240 --> 23:50.560
doubled. That's a perfect example of how we embrace

23:50.560 --> 23:53.640
change. We did it in the semiconductor industry as

23:53.680 --> 23:56.640
well by looking at the flip side of the tariffs, which

23:56.680 --> 24:00.600
tariffs would not stick because if you recall that board,

24:00.600 --> 24:03.240
some of the numbers on there were very high relative to what

24:03.280 --> 24:03.960
the numbers are today.

24:03.960 --> 24:07.080
There were some 79s and 100s.

24:07.120 --> 24:09.680
That's right. Yeah, wasn't there some island with penguins on

24:09.720 --> 24:11.920
it only or something with very high levels?

24:11.920 --> 24:14.600
We tried to look at the substance over the forum.

24:14.600 --> 24:17.760
We saw that the trade order was changing.

24:17.760 --> 24:20.880
It wasn't necessarily specifically those numbers, but

24:20.920 --> 24:22.760
the general direction became clear to us.

24:22.800 --> 24:24.480
So you kind of went hunting in there.

24:24.520 --> 24:28.040
There's a question coming in here asking Max

24:28.080 --> 24:30.840
and Nick, could you explain how this fund differs from the

24:30.840 --> 24:34.000
other long short alt funds offered by

24:34.000 --> 24:37.120
Fidelity? So I mean, there is another global long

24:37.160 --> 24:40.600
short. It's very much value oriented.

24:40.640 --> 24:42.160
Tell us a little bit about, that's why I was asking about

24:42.200 --> 24:45.440
style. How is this different to the other alts?

24:45.480 --> 24:47.640
Yeah, you mentioned it, right?

24:47.640 --> 24:50.400
This is less of a style-oriented point.

24:50.440 --> 24:53.480
It's more of a global best ideas, I

24:53.520 --> 24:56.560
would say. Also, our short

24:56.560 --> 25:00.680
book is managed in a way where we want just the diversified

25:00.680 --> 25:02.080
sources of returns, right?

25:02.120 --> 25:04.360
Very company-specific narratives.

25:04.400 --> 25:07.640
Again, less of a factor bet and more of a what's

25:07.680 --> 25:09.600
happening with each individual company.

25:09.640 --> 25:12.880
And in that perspective, we manage the short book with very

25:12.880 --> 25:14.400
tight risk management.

25:14.400 --> 25:17.600
We don't want one stock to

25:17.640 --> 25:19.480
start dominating the performance there.

25:19.520 --> 25:22.240
We rather want to take a basket approach.

25:22.240 --> 25:26.040
And so- On the short side, specifically,

25:26.040 --> 25:28.840
because the short side, it's beautiful, the shorts.

25:28.840 --> 25:32.040
As Max mentioned, there's a long tail of losers to play

25:32.040 --> 25:35.080
for. We have the research analysts who identify both the

25:35.120 --> 25:36.960
winners and the losers in their space.

25:36.960 --> 25:40.520
Huge opportunity to add returns and lower volatility.

25:40.560 --> 25:43.720
The flip side is that a short, you know, you can

25:43.720 --> 25:46.640
lose in theory multiple times your initial capital.

25:46.680 --> 25:49.840
But we offset that to, again, strong risk management.

25:49.880 --> 25:53.040
If a position starts to move against us, we'll review the

25:53.080 --> 25:56.480
thesis and even if we still think the thesis is intact,

25:56.480 --> 25:59.240
we'll manage the position size back to the original position

25:59.240 --> 26:02.320
size to avoid a small problem becoming a big problem for this

26:02.360 --> 26:02.400
book.

26:02.400 --> 26:05.520
Part of that risk management is also Nick and I sitting next

26:05.520 --> 26:07.120
to each other every day.

26:07.120 --> 26:10.280
So if there's a position that I've put in the portfolio and

26:10.280 --> 26:13.480
it's going against us, there is nowhere for me to hide

26:13.480 --> 26:16.440
because Nick is right there. And it means that I don't just

26:16.440 --> 26:19.320
need to convince Nick that an idea is good to be in the

26:19.320 --> 26:22.600
Portfolio. I need to convinced him that it remains good.

26:22.600 --> 26:25.240
That forces us to review the thesis.

26:25.240 --> 26:27.360
It increases the level of discipline.

26:27.360 --> 26:29.480
It's part of the benefit of having both of us on the

26:29.480 --> 26:29.720
strategy.

26:29.720 --> 26:32.920
That's amazing. Would you say a theme of the

26:32.920 --> 26:36.200
fund at the moment is the reversal of globalisation?

26:36.200 --> 26:39.520
Like is that something that as

26:39.520 --> 26:42.920
companies have become more looking for more local clients

26:42.920 --> 26:46.280
that may just be inside their very large country, but is that

26:46.280 --> 26:49.320
a big piece of finding global stocks that

26:49.320 --> 26:52.120
are reversing and not selling to the world as much?

26:53.120 --> 26:54.680
It's an important piece. But that to both of you.

26:54.720 --> 26:57.720
Yeah, I mean, Max, I'm sure has a lot of thoughts on

26:57.760 --> 27:00.920
it. It's different from just the AI story.

27:00.960 --> 27:04.600
It just shows you follow many trends in the market.

27:04.600 --> 27:06.960
And we always look where there's a lot of change, because

27:06.960 --> 27:10.320
that's where there is the most potential for

27:10.320 --> 27:11.840
a narrative the market got wrong.

27:11.880 --> 27:14.120
And that's why we really excel.

27:14.120 --> 27:17.000
So, you know, we gave a couple of examples where that line of

27:17.040 --> 27:20.480
thinking brought us from an Australian mine to the

27:20.480 --> 27:21.920
European steel sector.

27:21.920 --> 27:25.000
And, you know, potentially it brings us

27:25.040 --> 27:28.120
in the United States where there's industrial companies that

27:28.160 --> 27:31.480
can benefit from reshoring and it'll

27:31.480 --> 27:33.960
keep bringing us in different parts of the world.

27:33.960 --> 27:35.360
And on the short side, too, right?

27:35.400 --> 27:38.600
Think of a company selling goods, maybe an American company

27:38.640 --> 27:40.880
selling coffee in China.

27:40.920 --> 27:44.040
Those have been very, very good lines of business

27:44.080 --> 27:46.280
for a long time, maybe more difficult going forward.

27:46.280 --> 27:49.560
So, on the short side, it's also created

27:49.600 --> 27:52.280
a lot of opportunities for us to capitalise.

27:52.320 --> 27:53.560
Yeah, would you say about that?

27:53.560 --> 27:56.080
I think we're careful not to get too focused on any one

27:56.080 --> 27:59.120
thematic, as Nick was saying. We observe them, we

27:59.160 --> 28:01.120
anticipate and we react.

28:01.120 --> 28:04.360
So I almost want to describe de-globalisation

28:04.360 --> 28:05.840
as re-glocalization.

28:05.840 --> 28:09.040
As you know, our Prime Minister went and

28:09.040 --> 28:12.120
in Switzerland mentioned his desire to create new trade

28:12.160 --> 28:13.920
agreements with other countries.

28:13.920 --> 28:17.240
So in some instances we see de-globilization.

28:17.280 --> 28:20.600
In some instances, we see new ties forming.

28:20.600 --> 28:24.320
We are opportunistic, we change when the facts change.

28:24.360 --> 28:27.600
We're very connected with our research around the world and

28:27.600 --> 28:30.160
we're supported by this incredible team.

28:30.160 --> 28:32.400
What countries are you in that you can share with us?

28:32.400 --> 28:35.600
You don't need to do a long laundry list, but perhaps even

28:35.600 --> 28:36.600
countries that we wouldn't know.

28:38.600 --> 28:41.800
There's still a lot of, you know, it's

28:41.800 --> 28:44.360
various countries in Europe, UK,

28:45.840 --> 28:49.320
Korea, Taiwan, different parts of Asia,

28:49.320 --> 28:53.360
and you know of course Canada too, sitting in

28:53.360 --> 28:56.920
Toronto we have a very good flow of ideas,

28:56.920 --> 29:00.120
but I think it's just broad and it will keep shifting as

29:00.120 --> 29:01.680
the opportunities shift.

29:01.720 --> 29:03.080
Can you go to EM?

29:03.080 --> 29:03.360
No.

29:03.360 --> 29:06.760
We can add a small portion in EM, yeah, so opportunistically

29:06.760 --> 29:10.120
we found good, sometimes the

29:10.120 --> 29:13.240
EM is the best place to be in a particular thematic, or

29:13.240 --> 29:16.240
we find a great idea in EM.

29:16.240 --> 29:19.360
It's a smaller portion since we're an MSCI world, but we can

29:19.360 --> 29:21.560
have a couple percent there and we've certainly taken

29:21.560 --> 29:21.960
advantage of it.

29:21.960 --> 29:25.040
Typically has to be something special for us to go to

29:25.040 --> 29:28.360
EM. We're not gonna go there for a national grocery

29:28.360 --> 29:31.320
store, most likely, but we may go there, for instance, if we

29:31.320 --> 29:34.200
find the best battery maker in the world.

29:34.200 --> 29:37.480
When all the battery companies are losing money, we

29:37.480 --> 29:39.040
will go to an EM.

29:39.040 --> 29:41.600
Nick may wanna speak a little bit more about that one.

29:41.600 --> 29:44.720
Well, that was fine. I mean, we're connected and we have

29:44.720 --> 29:46.760
10 people from our teams.

29:46.760 --> 29:49.440
You know, we have Alice sitting in Hong Kong, but they'll go

29:49.440 --> 29:52.400
to Taiwan. They'll go in China as well.

29:52.400 --> 29:55.360
And, you know, we can own Hong Kong listed stocks.

29:55.360 --> 29:58.880
And sometimes if that is the low cost producer, when

29:58.880 --> 30:01.720
you have an industry where everyone's losing money, it

30:01.720 --> 30:05.080
usually is a good time to find that low cost, uh,

30:05.080 --> 30:06.640
producer, the leader.

30:06.640 --> 30:09.920
It was fascinating. The insights our teams got, documenting

30:09.920 --> 30:12.840
the culture there and the bets they've been making always on

30:12.840 --> 30:15.360
the next technology and how they got to that position.

30:15.360 --> 30:18.040
Because that's important in terms of how we think, will they

30:18.040 --> 30:20.760
remain in that position in two years, in five years.

30:20.760 --> 30:23.160
So we had some insights there.

30:23.160 --> 30:26.080
Industry was in the downturn because of EVs as we know.

30:26.080 --> 30:29.280
But that's part of when they said, you know, something's

30:29.280 --> 30:32.080
changing because now these batteries, they're not just EV

30:32.080 --> 30:34.360
plays. We're putting them on the grid.

30:34.360 --> 30:35.800
We're cutting them with solar panels.

30:35.800 --> 30:37.880
The cost is declining.

30:37.880 --> 30:41.240
It's solving a lot of issues on the energy front and

30:41.240 --> 30:44.160
so even from that insight It wasn't just that company that

30:44.160 --> 30:47.480
was interesting, but that had repercussions on many

30:47.480 --> 30:50.520
other ideas that we've been looking at that could be

30:50.520 --> 30:51.720
in the US, for example.

30:51.720 --> 30:54.840
It's so interesting. So can you tell us

30:54.840 --> 30:57.120
how much is tilted towards the US at this stage?

30:58.480 --> 31:01.600
We'll have around a third of our portfolio, maybe

31:01.600 --> 31:04.680
a little bit more exposed to the US in terms

31:04.680 --> 31:06.160
of the domicile.

31:07.280 --> 31:10.000
I want to emphasise that we think substance over form.

31:10.000 --> 31:12.440
So there are instances where, if you've looked at our

31:12.440 --> 31:15.680
holdings, you would say, that company is located in

31:15.680 --> 31:17.520
XYZ country.

31:17.520 --> 31:20.600
If most of their sales are in the US, we think of them as a

31:20.600 --> 31:21.760
US company.

31:21.760 --> 31:24.920
So I'm going to ask you to just quickly wrap up of why the

31:24.920 --> 31:28.360
Canadian investor joining you here today should

31:28.360 --> 31:30.800
take a look at this fund and perhaps balance out their

31:30.800 --> 31:33.600
Canadian exposure or maybe different types of U.S.

31:33.600 --> 31:35.480
Exposure. Do you want to take a crack at that?

31:35.480 --> 31:38.400
Yeah, I mean, this is a really exciting time for us to

31:38.400 --> 31:41.560
manage, you know, a global strategy doing in this

31:41.560 --> 31:45.080
partnership with the research and then

31:45.120 --> 31:47.360
the philtre that we bring the two of us.

31:47.360 --> 31:49.000
I think it's really unique.

31:49.000 --> 31:52.880
And right now, our broad mandate is we're

31:52.920 --> 31:55.440
seeing a really good opportunity set for that because the

31:55.480 --> 31:58.640
markets are broadening. You know, we didn't talk about the AI

31:58.640 --> 32:00.960
also, a lot of losers emerging.

32:00.960 --> 32:03.760
So to be able to play on both sides of the market in an

32:03.760 --> 32:06.280
environment that's shifting from geopolitics, from

32:06.280 --> 32:09.360
technology, and in a broadening

32:09.360 --> 32:12.440
market is exactly, I think, the perfect

32:12.440 --> 32:16.040
environment for a global long-short opportunistic

32:16.040 --> 32:17.720
strategy like this one.

32:17.720 --> 32:20.880
And I think yeah, investors in general may have

32:20.920 --> 32:24.000
a lot of US exposure, may start to just look

32:24.040 --> 32:27.240
at, okay, where can I diversify in this new

32:27.280 --> 32:30.280
world? Maybe the things that got me here in the last 10, 15

32:30.280 --> 32:33.400
years look a little bit different And I think that's

32:33.440 --> 32:35.160
a great place to start the conversation on this.

32:35.160 --> 32:38.000
Actually your mandate to do both sides of that, the winners

32:38.000 --> 32:39.600
and the losers.

32:39.600 --> 32:41.720
Anything to add to that Max? He answered that beautifully,

32:41.720 --> 32:42.840
but I thought I'd just ask you.

32:42.840 --> 32:44.920
I think so. Nick always answers.

32:44.920 --> 32:47.240
He answers many things beautifully.

32:47.240 --> 32:50.160
I'm thrilled to have the opportunity to work with him.

32:50.160 --> 32:51.840
I don't have anything else to add.

32:51.880 --> 32:54.640
Fantastic. Max and Nick, thank you for joining us here.

32:54.680 --> 32:57.360
Congratulations on the launch, and I'm sure we'll see you

32:57.360 --> 32:59.400
soon to hear the updates.

32:59.400 --> 33:00.400
Thank you.

33:00.880 --> 33:04.800
<b>Thanks for watching or listening to the Fidelity Connects</b>

33:04.800 --> 33:08.960
<b>podcast. Now if you haven't done so already, please subscribe to Fidelity</b>

33:08.960 --> 33:11.720
<b>Connects on your podcast platform of choice.</b>

33:11.720 --> 33:14.600
<b>And if you like what you're hearing, please leave a review or a five-star</b>

33:14.600 --> 33:18.560
<b>rating. Fidelity Mutual Funds and ETFs are available by working with</b>

33:18.560 --> 33:21.920
<b>a financial advisor or through an online brokerage account.</b>

33:21.920 --> 33:25.600
<b>Visit fidelity.ca/howtobuy for more information.</b>

33:25.640 --> 33:29.480
<b>While on Fidelity.ca, you can also find more information on future live</b>

33:29.480 --> 33:33.600
<b>webcasts. And don't forget to follow Fidelity Canada on YouTube, LinkedIn,</b>

33:33.600 --> 33:34.920
<b>and Instagram.</b>

33:34.920 --> 33:37.720
<b>We'll end today's show with a short disclaimer.</b>

33:37.760 --> 33:41.560
<b>The views and opinions expressed on this podcast are those of the participants,</b>

33:41.600 --> 33:45.520
<b>and do not necessarily reflect those of Fidelity Investments Canada ULC or</b>

33:45.520 --> 33:49.520
<b>its affiliates. This podcast is for informational purposes only, and should not</b>

33:49.520 --> 33:52.080
<b>be construed as investment, tax, or legal advice.</b>

33:52.080 --> 33:54.360
<b>It is not an offer to sell or buy.</b>

33:54.400 --> 33:58.720
<b>Or an endorsement, recommendation, or sponsorship of any entity or securities</b>

33:58.720 --> 34:03.520
<b>cited. Read a fund's prospectus before investing, funds are not guaranteed.</b>

34:03.520 --> 34:07.080
<b>Their values change frequently, and past performance may not be repeated.</b>

34:07.080 --> 34:09.520
<b>Fees, expenses, and commissions are all associated</b>

34:09.520 --> 34:11.680
<b>with fund investments.</b>

34:11.680 --> 34:13.360
<b>Thanks again. We'll see you next time.</b>