John Muresianu, manager of Fidelity American, has left the group and management of the fund has bee...
John Muresianu, manager of Fidelity American, has left the group and management of the fund has been passed to Fergus Shiel.
Shiel, who has already taken over the portfolio, currently runs three funds for Fidelity in the US, with combined assets of $5.6bn. There are no plans at this time to reduce the number of funds Shiel manages and Fidelity American will add another £1.4bn to the amount he is running.
Stuart Holah, head of Fidelity's intermediary business, said the group would look to put Boston-based Shiel in touch with major UK investors in the fund as soon as possible.
Standard & Poor's has withdrawn Fidelity American's AA rated status until it can interview the new manager.
Fidelity believes Shiel has a management style similar to that of Muresianu, being neither growth nor value oriented.
While it is unclear if Shiel will maintain the 400-stock portfolio the way it currently stands, he has a contrarian approach to stock selection similar in style to Muresianu, according to Fidelity, which believes there will be some continuity on the portfolio.
Holah said Shiel uses fundamental, bottom-up research, has frequent company contact and believes relevant macroeconomic changes are evident at an individual company level. According to the group, Shiel is happy to invest in growth or value stocks, or both, although his current positioning in his other portfolios has a bias towards value stocks and he is favouring the consumer staples sector.
His buy discipline is to look for companies with improving fundamentals, strong free cashflow, with a focus on companies with market capitalisations greater than $200m.
He looks for a catalyst to propel strong stock performance over six to 18 months and tries to seek out companies with solid, sustainable revenue growth and reasonable valuations.
When an investment idea has been fulfilled, such as profit margin expansion or realisation of earnings growth, Shiel will look to sell the holding.
He will also drop a company if there is deterioration in fundamentals, if he has valuation concerns or if he spies a more attractive opportunity in another area.
Muresianu has managed Fidelity American since December 1997 and has spent 16 years at Fidelity. He has left the group for personal reasons, to spend more time with his family and manage his own investments.
Shiel, who has been with the company since 1990, manages the $5.5bn Fidelity Independence Fund, the FA Dynamic Capital Appreciation Fund and the VIP Dynamic Capital Appreciation Fund.
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