Page 7 - DIY Investor Magazine - Issue 28

Of course, past performance is no guarantee of future returns. The question for Wright is whether these promising signs are the start of a prolonged structural shift or just a flash in the pan. No one can be sure, but Wright is hopeful. As he says, “things are really looking up from a macro perspective.” “ANTI-MOMENTUM, CONTRARIAN STRATEGY” Wright isn’t a value investor just for the fun of it. He feels this is the best way to deliver long-term capital growth for investors. For Wright, his value-focused approach is all about getting an “edge” on other investors who often flock to more popular - and often highly valued - parts of the market. As he explains: “I like looking at things that are unfashionable which other investors aren’t really excited about. I think that if you’re looking at an unfashionable stock or sector, where fewer people are interested, there’s more chance of you getting an edge by doing the deep research there.” This draws him in particular to “complicated” businesses and ones which look set for a turnaround in fortune - perhaps they’ve encountered short term difficulties, but their fundamentals remain strong. Find out more about Fidelity Special Values PLC > To buy this trust login to your EQi account Select Fidelity Special Values PLC - GB00BWXC7Y93 Important Information Investors should note that the views expressed may no longer be The trust may invest in overseas markets, so the value of investments could be affected by changes in currency exchange rates. The trust uses financial derivative instruments for investment purposes, which may expose the trust to a higher degree of risk and can cause investments to experience larger than average price fluctuations. This trust invests more heavily than others in smaller companies, which can carry a higher risk because their share prices may be more volatile than those of larger companies and the securities are often less liquid. The shares in the investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility. If you are unsure about the suitability of an investment you should speak to a Fidelity adviser or an authorised financial adviser of your choice. The latest annual reports, key information documents (KID) and factsheets can be obtained from our website at www.fidelity.co.uk/its or by calling 0800 41 41 10. The full prospectus may also be obtained from Fidelity. Fidelity Investment Trusts are managed by FIL Investments International. Issued by Financial Administration Services Limited, authorised and regulated by the Financial Conduct Authority. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited. UKM0321/SSO/34095/0322 He finds parts of the financial sector often ticks his contrarian boxes: it’s one that’s been out of favour since the 2008 crisis; it typically comprises complex businesses like life insurers that most investors either fail or don’t attempt to understand; yet it’s home to many “very good companies”, according to the manager. Quality remains key to this strategy. Wright swims against the current because he feels that’s the best way to find the best opportunities: “It’s not buying bad companies. It’s buying companies that people perceive as being bad today because of something that has clouded their judgement.” That logic could be applied to the UK as a whole. This is a sturdy market, which boasts some of the world’s largest and best-known companies. But recent difficulties have driven investors away from our shores to pursue shiny success stories abroad. Wright, meanwhile, keeps his gaze firmly on the opportunities they leave behind. current and may have already been acted upon. 7 DIY Investor Magazine | Apr 2021