# Asia small cap opportunities: Fidelity Asian Values latest research (LON:FAS)

- Link: https://www.directorstalkinterviews.com/asia-small-cap-opportunities-fidelity-asian-values-latest-research-lonfas/4121152912
- Published: 2024-04-22T15:43:18+01:00
- Author: Amilia Stone

**Fidelity Asia Values plc** ([LON:FAS](https://www.directorstalkinterviews.com/company/fidelity-asian-values-plc/fas.l))
is managed by Nitin Bajaj who takes a value-orientated approach to building a portfolio
of predominantly small-cap companies from across the Asian region. This approach
is supported by a simple philosophy of identifying good companies that are run by
strong management teams and buying them at an attractive price. Nitin has significant
flexibility in where he can invest, including the ability to invest up to 20% in
larger companies and Australian-listed businesses which, when combined with the 
valuation-driven approach, can lead to a Portfolio that is highly differentiated
from both the benchmark and peer group.

Stock selection is designed to be the primary driver behind Performance. Nitin utilises
the strength and depth of the on-the-ground analyst team at Fidelity to try to build
an informational edge over the market and find value in companies that others overlook.
The valuation focus has also led to Nitin finding a number of opportunities in China
which is now at its largest overweight allocation in his tenure. He believes these
deep-value opportunities offer significant upside if sentiment improves, as well
as downside protection through deeply depressed valuations.

In order to capitalise on this value opportunity, the manager has increased the 
net exposure on the trust to 3.3%. Fidelity’s house style is to use derivatives 
instead of traditional Gearing facilities, which also allows Nitin to take short
positions in stocks and benefit from a potential fall in value.

FAS continues to trade at a Discount to NAV. The level of discount is almost as 
wide as its nadir in mid-2023 at 9.7%.

[retail_Fidelity_Asian_Values_February_2024](https://www.directorstalkinterviews.com/wp-content/uploads/2024/04/retail_Fidelity_Asian_Values_February_2024.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2024/04/retail_Fidelity_Asian_Values_February_2024.pdf)

**[Fidelity Asian Values Plc](https://www.directorstalkinterviews.com/company/fidelity-asian-values-plc/fas.l)**(
LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets.
Asia is the world’s fastest-growing economic region and the trust looks to capitalise
on this by finding good businesses, run by good people and buying them at a good
price.

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