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Shiel rethink of Fidelity fund sparks concerns

The new manager of Fidelity&#39s £1.4bn American Fund Fergus Shiel, who replaced John Muresianu, is understood to be cutting holdings to between 100 and 150 from 400, fuelling IFA concerns about the changeover.

Shiel took over the fund last month after star manager Muresianu resigned and began altering its stock composition and style in a way that IFA Hargreaves Lansdown is unsure will add value under current conditions. One of its main concerns is Shiel&#39s intention to slash stocks in the fund.

It doubts whether Shiel can stand by his assertion that the fund will have a mid-cap bias as it believes most firms are fully valued, saying that he may well be forced to look further up the cap range to add any value.

Senior analyst Meera Patel says: “It would have been interesting to see what Fidelity&#39s other options were. I don&#39t know how much Shiel can add with his style.”

Fidelity senior portfolio strategist John Ross says: “Fergus wants to back stocks he has a conviction about. There will be a bias towards small and mid-cap stocks although the proportion of large caps could well increase.”

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