| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 168.76 | -61 |
| Intrinsic value (DCF) | 123.44 | -72 |
| Graham-Dodd Method | 5.55 | -99 |
| Graham Formula | 150.33 | -66 |
Fidelity Special Values PLC (FSV.L) is a UK-based open-ended equity mutual fund managed by FIL Investment Services (UK) Limited, focusing on value stocks across diversified sectors in the UK public equity markets. Launched in 1994, the fund targets special situations investments and companies with unrecognized growth potential, capitalizing on market volatility and uncertainty. It benchmarks its performance against the FTSE All Share TR Index, offering investors exposure to undervalued opportunities across all market capitalizations. As part of the broader Fidelity Investment Trust, the fund benefits from the expertise and resources of one of the world's leading asset managers. With a market cap of over £1.13 billion, Fidelity Special Values PLC is a significant player in the UK financial services sector, appealing to investors seeking long-term capital appreciation through value-driven strategies.
Fidelity Special Values PLC presents an attractive investment opportunity for those seeking exposure to undervalued UK equities with growth potential. The fund's focus on special situations and unrecognized growth aligns well with value investing principles, offering potential upside in volatile markets. However, its high beta of 1.58 indicates higher volatility compared to the broader market, which may not suit risk-averse investors. The fund's strong net income of £223.3 million and a dividend yield of 9.66 GBp per share enhance its appeal, but investors should be mindful of the inherent risks in value investing, including prolonged undervaluation periods. The absence of debt and solid operating cash flow of £36.9 million provide financial stability, making it a compelling option for diversified portfolios.
Fidelity Special Values PLC competes in the crowded UK equity mutual fund space, differentiating itself through a specialized focus on value stocks and special situations. Its competitive advantage lies in the deep analytical resources and global reach of Fidelity Investments, allowing it to identify undervalued opportunities that smaller funds might overlook. The fund's performance is closely tied to the UK market, which can be both a strength and a weakness—benefiting from localized expertise but exposed to regional economic fluctuations. Unlike growth-focused funds, Fidelity Special Values thrives in uncertain markets, leveraging volatility to uncover mispriced assets. However, its niche strategy may underperform in bull markets dominated by growth stocks. The fund's lack of leverage (zero debt) provides stability but may limit returns in favorable market conditions. Its benchmark, the FTSE All Share TR Index, ensures transparency and accountability, appealing to institutional and retail investors alike.