Fidelity goes stock neutral under threat of stagflation

Fidelity International prides itself on stockpicking, but asset allocation also plays a big role in seeking the best returns. Trevor Greetham, asset allocation director at Fidelity International, said the 10-strong asset allocation group, which he heads, draws upon bottom-up information from Fidelity analysts and provides additional top-down input to equity and fixed income portfolio managers. "Tactical asset allocation offers a separate uncorrelated source of alpha to complement the alpha generated by stockpicking. Position sizes are calibrated to complement rather than dominate return...