Fidelity's Korhonen learns lesson from Lehman call

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Fidelity Global Special Situations fund manager Jorma Korhonen blames last autumn's financial crisis including the collapse of Lehman Brothers for his portfolio's significant underperformance.

Korhonen's £1.5bn fund is down 31.7% over one year to 26 January 2009 compared to an IMA Global Growth sector average drop of 20.5%, according to Morningstar. He says: "The level of demand destruction that we have seen in Q4 took me by surprise. We were already heading into a recession, but then we hit the accelerator." Korhonen attributes much of his fund's underperformance to his holding in Lehman Brothers, although this was not a top ten position. In his view, the demise of the investment bank had a catastrophic impact on global markets. "Things went wrong when Lehman Brother fi...

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