Introducing Fidelity Long-Term Leaders Fund - Charlie Hebard and Michael Kim

November 18, 2020

Portfolio Managers Charlie Hebard and Michael Kim discuss the Fidelity Long-Term Leaders Fund.  Hebard and Kim are key members of the team managing the new fund. The fund was a brainchild of legendary investor Joel Tillinghast.  10 years ago, Tillinghast asked Fidelity’s research department to start identifying companies that had certain fundamental criteria of long-term leaders.  The in 2015, Fidelity launched a pilot using the fundamental signals developed by Joel and equity analysts. Last year, Fidelity U.S. launched the fund and then it was brought into Canada.  With hundreds of analysts around the world, Fidelity has the ability to identify long-term leaders no matter how small they are. Hebard, Kim and the rest of the team research companies for the fundamental analysts to help them gain conviction for an idea. The analysts then signal whether the company is a long-term leader.  The quantitative process takes the possibility of bias in the portfolio management decision out of the equation.  The team also analyzes business models in the U.S. to determine if and how those models might extrapolate to other countries and or cities.  Essentially, the fund is trying to capture secular long-term growth.

Recorded on November 6, 2020.