Fidelity Select Industrials Portfolio Q1 2025 Commentary

2025-05-07 04:00:00 ET

Summary

• Fidelity Select Industrials Portfolio is a sector-based equity-focused strategy that seeks to outperform its benchmark through active management.
• Within the S&P 500, industrials ended with the eighth-best result for the quarter among the 11 market sectors.
• For the first quarter, the fund returned -2.87%, trailing the fund's sector benchmark, the MSCI U.S. IMI Industrials 25/50 Index, but topping the S&P 500.

Investment Approach

• Fidelity® Select Industrials Portfolio is a sector-based equity-focused strategy that seeks to outperform its benchmark through active management.
• We believe that uncertainty provides investment opportunity. Stock prices can become disengaged from a company's intrinsic (fair) value at cyclical extremes because of investor overreaction.
• Cyclical stocks exhibit repeatable patterns. We believe this can present opportunities for a disciplined investor whose time horizon spans the next cycle.
• We strive to capitalize on these opportunities through intensive, academic-style research on cyclical drivers and company-specific fundamentals, along with disciplined portfolio construction. The fund's success is predicated on finding the right mix of undervalued cyclicals and more-consistent earnings growers throughout the cycle.
• Sector strategies could be used by investors as alternatives to individual stocks for either tactical- or strategic-allocation purposes.

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