Portfolio Manager Brett Dley heads up the Fidelity Market Neutral Alternatives Fund, which launched in October 2020 to investors. In this episode, he explores liquid alternatives as an emerging asset class and how to use market-neutral strategies to diversify amid potential volatility. Brett breaks down the structure of the fund and his strategy behind it. The fund works on pair trades and areas of dispersion and change. The sectors he's focusing on are technology, healthcare, industrials and consumer discretionary. He points out that it doesn't matter what direction the market goes for this fund. The purpose of this fund is to have positive absolute return independent from any market direction. Brett takes a bottom-up approach to stock picking. Prior to becoming a portfolio manager, he was an analyst. For this fund, he's sticking to the same approach he's been doing for the past 10 years as he continues to build this new fund.
Recorded on February 19, 2021