Institutional portfolio manager Naveed Rahman shares his outlook on investing in global small caps, and discusses current fund positioning in Fidelity Global Intrinsic Value Fund, managed by Joel Tillinghast. Naveed agrees with the current view that a rotation is due: it is only a question of just when value will outperform growth. Because valuations are so stretched, he doesn’t believe it will take much for a rotation to occur, and many of the cheaper companies have cyclical orientations. That means that if we see a vaccine, we could also see a slowdown in the hyper-growth companies that have been benefiting from COVID-19. Naveed notes that the governance component of ESG has always been critical to stock selection. Fidelity’s managers are now paying even more attention to ESG, and leveraging Fidelity’s ESG quantitative team.
Recorded on October 22, 2020.