Fidelity's Shah cuts overseas stocks for domestic names

Fidelity's Sanjeev Shah has reduced his weighting to overseas equities in the £3bn Special Situations fund in favour of domestic large caps.

The manager also says equities are no longer the ‘bargain' they were in March 2009, and have reached fair value, although the large-cap end of the spectrum is offering the best relative value. "The bias of my portfolio has changed recently and today around 60% is in FTSE 100 names, an unusually high proportion," Shah says. "Although I am able to hold up to 20% of my portfolio in overseas companies, mainly European names, I have had no difficulty in finding good bottom-up ideas in the UK over the past three years so I have not felt the need to fill the overseas quota. "However, rece...