Salim Hart, portfolio manager, and Naveed Rahman, institutional portfolio manager, share their perspectives on the growth of value stocks and provide an update on Fidelity Global Intrinsic Value Class which Salim manages with Joel Tillinghast. Naveed explains that they expect to see an increase in inflation rates and higher interest rates; this will benefit value stocks. Naveed notes that there has been much mispricing in the last 9-12 months. Attractive pricing is interesting to Naveed but is not always a reason to buy the stocks. They discuss an interesting anomaly the Fidelity research team uncovered in the market and how it reacted to this anomaly. Salim discusses what is attractive within international exposure and notes that the team embraces ESG, with governance being a big focus. They also discuss commodities and REITs (Real Estate Investment Trust).
Recorded on May 6, 2021.