How are long-term leaders adapting to the reopening trade? - Charlie Hebard and Michael Kim

April 5, 2021

Charlie Hebard and Michael Kim are from the team behind Fidelity Long-Term Leaders Fund. Today they discuss the importance of identifying and assessing long-term industry leaders worldwide, and where they fit within a portfolio. Charlie and Michael explain that their criteria for stock picking follows three points. The first is competitive advantages compared to others in the industry. Second, quality in the management team. Third, industry outlook, which includes growth opportunities, tail winds, and emerging trends. Charlie expands on this criteria, explaining this fund has a growth tilt, looking at the best companies the team can find throughout the world. This strategy won’t change as Charlie and Michael have a lot of conviction for growth in the right names, as the market has been changing. Although, reflecting on their sell mandate, Charlie explains they may sell if a company is no longer worthy of the long-term leader designation, or if a position performs well and the position size becomes large enough to have too much of an impact on the fund

Recorded on March 30, 2021.