Outlook 2015: Contrarian Investments

Feeling bold? Alex Wright, portfolio manager of Fidelity Special Situations, outlines where he thinks the contrarian opportunities will be in stock markets next year

Fidelity International 2 December, 2014 | 7:45AM
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Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Alex Wright, Portfolio Manager of Fidelity Special Situations Fund, discusses the outlook for equity markets in 2015 and the impact of political events on his management approach.

In the latter half of 2014, a series of events introduced a degree of uncertainty in the global economy. Increasing aggression on the Russian border, along with the emergence of ISIL in Iraq and Syria, threatened to disrupt investor confidence, while the continuing weak macroeconomic outlook in Europe posed a challenge for companies which rely on these geographies for earnings growth.

Of greater concern to me is the political outlook for the UK. As a bottom-up stock picker, I am reluctant to spend my time on political analysis but regrettably the highly uncertain outlook for the UK political landscape presents a risk for many companies in my investment universe. As a result, I have been spending some time understanding the various moving parts in next year’s general election and beyond.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Ferguson PLC11,485.00 GBP0.00Rating
HSBC Holdings PLC414.05 GBP0.00Rating
Norcros PLC288.00 GBP0.00
Royal Dutch Shell PLC B1,556.40 GBP0.00Rating
Volkswagen AG258.60 EUR0.00Rating

About Author

Fidelity International

Fidelity International  

is a global leader in asset management, providing investment products and services to individuals and institutions in the UK, continental Europe, the Middle East and Asia Pacific.