Fidelity Emerging Markets gives investors access to developing market equities through a strategy that combines long investments in stronger companies with short positions in weaker ones. The structure broadens the range of opportunities available to the managers and provides an additional tool for managing risk in a volatile asset class.
A defining feature of the strategy is the combination of long and short positions. Long holdings target companies with strong balance sheets, consistent returns and sound governance structures. These businesses are typically able to generate cash across economic cycles and are purchased at valuations the managers believe offer attractive long term potential. Short positions are used to take advantage of companies facing structural or financial challenges. The managers aim to identify businesses with deteriorating fundamentals rather than relying on valuation alone.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
