ONEQ - Fidelity Small Cap Value Fund Q1 2025 Review
2025-05-06 10:00:00 ET
Summary
- Fidelity Small Cap Value Fund takes a value approach to investing, focusing on companies with above-average quality characteristics, including good capital allocation, and that are trading at below-market multiples.
- The fund's Retail Class shares returned -5.70% for the three months, versus -7.74% for the Russell 2000 Value Index.
- Our strategy seeks to generate long-term outperformance through individual stock picking, while limiting the impact of other variables.
Investment Approach
- Fidelity® Small Cap Value Fund takes a value approach to investing, focusing on companies with above-average quality characteristics, including good capital allocation, and that are trading at below-market multiples.
- We strive to buy the best businesses available among these value plays, though in periods of extremely high return variance, we may opportunistically go further down the quality spectrum if there is sufficient valuation dispersion in the market to justify it.
- Each of our investments is scrutinized for a perceived margin of safety, assessed through rigorous analysis of each firm's income statement and balance sheet.
- We employ a disciplined portfolio construction approach and manage the portfolio in a relatively concentrated fashion in order to emphasize our best ideas, and to try to have most of the risk and return of the fund driven by stock-specific factors.