Fidelity Special Situations fund manager Sanjeev Shah is to step down from fund management.
Shah will be replaced by Alex Wright on the £2.7bn portfolio having been manager since 2008, when Anthony Bolton’s Special Situations fund was split in two.
Wright is also portfolio manager of the Fidelity Special Values investment trust and co-manager of the Fidelity UK Smaller Companies fund alongside Jonathan Winton.
Fidelity says Shah will take on a role within Fidelity’s academy, focused on developing new investment talent.
Shah’s fund is first quartile over one and five years, retuning 37 per cent and 60 per cent respectively, and second quartile over three years, retunring 46 per cent,
Wright says: “Sanjeev and I clearly have the same style and I intend to run it in the same way going forward. I very much have the same value-contrarian approach. However, my holding period is shorter and I will not use stop options.”
Hargreaves Lansdown head of investment research Mark Dampier comments: “Although it has been a bumpy ride, investors should be pleased with the results. While 2010 and 2011 were particularly difficult years for the fund; as its holdings in banks and other economically sensitive areas fell as the euro crisis worsened, we stuck with the fund and it remained on the Wealth 150 list.
”It would have been easy for Shah to cave in and change his approach. However, he stuck to his guns, using share price falls to top-up his favoured holdings in unloved areas of the market. This approach was vindicated and the fund recovered and has performed strongly since.”