Fidelity's Korhonen learns lesson from Lehman call


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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