Fidelity UK special situations manager-elect Sanjeev Shah will continue using the wider powers of Ucits III on the fund once Anthony Bolton steps down from fund management in 2008.
Speaking at the Fidelity investment forum in London last week, Shah said he has used Ucits III powers on his European mandates in the past and will draw on that experience if appropriate.
He will also look to continue using the shorting ability he has on the portfolio although he will limit that to 5 per cent.
He said: “Shorting interests me because when I look for valuation anomalies, not only do I find significant opportunities which are undervalued but I also find those that are overvalued and the catalysts which may see them change over time.”
Bolton bought a put option to protect his fund earlier this year and it has been one of the top performers throughout recent market volatility.
The transition process for the £3.2bn fund has begun between the two managers, with Shah now attending company meetings while also sitting down with Bolton for an hour each week discussing companies in the portfolio and prospective buys.