FSMD - Fidelity International Capital Appreciation Fund Q2 2024 Review
2024-07-30 14:00:00 ET
Summary
- Fidelity Contrafund is a large-cap growth biased equity strategy focused on companies with durable multiyear earnings growth potential.
- Fidelity International Capital Appreciation Fund is a diversified international equity strategy that seeks capital growth by investing primarily in non-U.S. stocks.
- For the three months ending June 30, 2024, the fund returned -0.14%, trailing the 1.04% gain of the benchmark MSCI All Country World Index ex USA (Net MA) Index.
- Despite considerable investor uncertainty as of midyear, we believe either a soft landing or mild recession is the most likely scenario for the world's major economies.
Investment Approach
- Fidelity® International Capital Appreciation Fund is a diversified international equity strategy that seeks capital growth by investing primarily in non-U.S. stocks.
- Our investment approach seeks to identify high-quality growth stocks benefiting from long-term "mega trends," as well as the three "B's" - brands, barriers to entry and "best in class" management teams - using a proprietary quantitative screen and bottom-up fundamental analysis.
- Although the fund has wide latitude to underweight and overweight sectors and geographies relative to its benchmark, the MSCI All Country World ex USA Index, it employs a unique risk-managed portfolio construction process that attempts to optimize alpha (risk-adjusted excess return). Rather than adjusting security weights according to conviction, we use an equal-active- weight approach, which helps to limit the impact of dramatic fluctuations in any single position, while still allowing for high active share (benchmark differentiation).