Fidelity Special Situations fund manager Sanjeev Shah's use of derivatives to counter the recent downturn has helped deliver relative outperformance over sector peers and the market so far this year.
Morningstar analysis revealed Shah, like preceding Special Situations manager Anthony Bolton, has used UCITS III powers to hedge against the equity market downturn and to short on securities. Fidelity’s flagship UK vehicle may be down 7.4% in 2008 (to 2 September), but the fund has outperformed the Morningstar UK Equity Mid Cap category by 4.3% this year and is 2.9% up on the FTSE 250 (ex investment trust) index. Compared to peers over three months, the fund is down just 1.2% against the 5.7% decline for the IMA UK All Companies sector. Morningstar revealed the UCITS III manoeuvres c...
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