ONEQ - Fidelity Capital & Income Fund Q2 2024 Review
2024-07-30 08:00:00 ET
Summary
- Fidelity Contrafund is a large-cap growth biased equity strategy focused on companies with durable multiyear earnings growth potential.
- Fidelity Capital & Income Fund is a diversified high-yield bond strategy that seeks income and capital growth by investing primarily in the bonds of non-investment-grade companies.
- For the quarter, the fund gained 1.34%, versus 1.09% for the benchmark ICE BofA US High Yield Constrained Index.
- As the second half of 2024 begins, the portfolio reflects our analysis of relative valuations for stocks and high-yield debt.
Investment Approach
- Fidelity® Capital & Income Fund is a diversified high-yield bond strategy that seeks income and capital growth by investing primarily in the bonds of non-investment-grade companies.
- We apply an opportunistic investment approach, which results in tactical positions aimed to capitalize on relative value across a company's capital structure, including high-yield bonds, stocks, convertible securities, leveraged loans and preferred stocks.
- In particular, we seek companies with strong balance sheets, high free cash flow, improving business/industry fundamentals and sharp management teams that are motivated to reduce debt. In doing so, we take a longer-term investment outlook and also may take advantage of opportunities based on where we are in the credit cycle.
- We strive to uncover these investments through in-depth fundamental credit analysis, working in concert with Fidelity's high-income and global research teams.
