Value stocks continue to provide some of the best returns, according to Anthony Bolton, manager of F...
Value stocks continue to provide some of the best returns, according to Anthony Bolton, manager of Fidelity's Special Situations Fund.
Bolton, who has run the fund for more than 20 years, said: "Earlier this year, particularly with the technology, media and telecom bubble, there was a view that value was dead, but over the long-term value investment has provided some of the best returns.
"If you are doing what everyone else is doing, you are late to the party."
Explaining how he picks his stocks, he said: "I look for misvalued securities where I can see a catalyst that will lead to that valuation anomaly correcting." Searching for these stocks usually takes him outside of the FTSE, indeed his current holdings there make up 10% of the fund's portfolio.
He added: " I tend to favour industries more likely to see M&A activity, or something unique to that company that makes a deal likely."
He is underweight telecoms and banks because they are too large. Bolton likes BNFL, which he believes is given a large discount because of public distaste for nuclear power, which he feels could change.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
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