Portfolio Manager David Way discusses his thoughts on inflation, current themes in the market, and how he’s finding opportunities for alpha on both the long and short side of the fund. In terms of inflation, David is looking at interest rates and inflation in two parts: the real economy and the financial economy. The reality is that interest rates and credit spreads are really low. David says the Fidelity Long/Short Alternative Fund is for those investors who are optimistic about the future. We can’t necessarily time the market he says, but we can acknowledge that in today’s market, there are many pockets of excess - and that’s exactly what he’s trying to take advantage of. In this fund, David is able to fully invest in his long ideas. The structure of the fund allows him to own 130% of assets in long stocks. The fund also allows him to overcome the fear of losing money over things we can’t control as investors.
Recorded on January 12, 2021.