Alex Wright has outlined the changes he is planning for the £2.7bn Fidelity Special Situations fund which will see him remove the use of stop options in the fund.
Wright, who was named as fund manager Sanjeev Shah’s successor after Shah’s announcement to step down, will assume management in the new year and is also looking to reduce the average holding period in the fund.
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.”
In terms of holding period, Shah’s is circa 24 months while Wright’s is shorter at around 18 months.
Wright adds: “Over the last three years I have used contracts for difference trading and shorting. That has been adding value though it is limited amount of why I do.
“Options is something I have not used and something I am less comfortable so I will stop using them in the short term.”
Shah, who will work with Wright until the end of year as management is transitioned, plans to take a six month break before returning to Fidelity to work part-time at the firm’s PM Academy.
Shah says: “My decision to step down is a personal decision. This job demands 110 per cent focus and intensity and I do not have this level of intensity.”