Fidelity highlights European sector and shorting opps

clock •

Attractive valuations in telecoms and healthcare are presenting absolute value prospects in European equities despite a bleak economic outlook, according to Fidelity.

Anas Chakra, portfolio manager of the Fidelity FAST Europe fund, is overweight in the telecom service sector, as he believes there is genuine value in an overly-pessimistic market. Investors are concerned companies in the sector face more EU regulations and fear consumers could cut back their spending during a recession, he says. “However telecom spending is actually a small and fairly inelastic part of total spending and surveys show that consumers are more likely to cut back on a range of other goods and services first.” Chakra believes the healthcare sector is also interesting, ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Fifty years after 'Bogle's Folly', what comes next for financial advice?

Fifty years after 'Bogle's Folly', what comes next for financial advice?

'Indexing will continue to grow, but the wrapper through which investors access it will change'

Gillian Hepburn
clock 12 October 2026 • 4 min read
Chris Justham: Why the industry must 'entertain and engage' investors

Chris Justham: Why the industry must 'entertain and engage' investors

‘We can’t just offer them a dry cracker and ask them to chew it down’

Chris Justham
clock 07 October 2026 • 3 min read
Jupiter Merlin makes 'keystone' changes and cuts charges on Select range to attract advisers

Jupiter Merlin makes 'keystone' changes and cuts charges on Select range to attract advisers

Two new funds launched

Michael Nelson
clock 06 October 2026 • 6 min read