Fidelity Launches First Long/Short Mutual Fund

Apr 9 2008 | 11:54am ET

Fidelity Investments has launched its first 130/30 fund, feeding the growing demand among individual investors and financial advisers for short-extension strategies. 

The Fidelity 130/30 Large Cap Fund will be managed by Keith Quinton, who will use a combination of fundamental research and fundamentally-based quantitative models to select long and short investment ideas. The performance of the portfolio will be measured against the S&P 500, and the portfolio itself will maintain market-capitalization and style exposures similar to that of the index.

Quinton noted that Fidelity, which has experience in shorting via portfolios available to institutional clients, “is now bringing that experience to bear on behalf of mutual fund investors.”

“Investors, particularly those who take a more sophisticated approach to constructing their portfolios, are expressing interest in funds that adopt institutional-like strategies for achieving attractive risk-adjusted returns," said Sanjiv Mirchandani, president of Fidelity’s personal and workplace investing growth business.

Marty Willis, executive vice president of Fidelity Investments’ institutional services added that, “Advisers are beginning to recommend long/short solutions, particularly 130/30 structures, for their clients seeking attractive risk-adjusted returns.”

Fidelity Investments manages assets of more than $1.5 trillion.


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