Fidelity's Liu hit by mid-cap exposure

Fidelity‘s Allan Liu has said performance on the £2bn South East Asia fund has been hit by exposure to mid-cap stocks.

The fund manager said valuation movements have been more unpredictable since the slowdown in growth and value stocks have outpeformed growth so far this year, hitting the mid-cap stocks on the portfolio. "There are some unusual valuations in the stock market. An extreme example would be China Unicom, which to me is not a defensive stock as they do not pay much dividend, but it is seen as a defensive stock. "It outperformed the Hang Seng index by 20% the second half of last year, but it underperformed the Hang Seng by 36% for the first five months of the year, a very sharp movement, "h...