Fidelity's Wright: My 'well-timed' sale of Volkswagen

Sold out before emission scandal

Laura Dew
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The decision to sell out of his holding in Volkswagen just weeks before the emissions scandal broke proved timely for Alex Wright, manager of the £2.7bn Fidelity Special Situations fund.

The manager (pictured) held 2.5% in the stock in his £2.7bn fund earlier this year but began selling down the holding after it had risen 50% since the purchase. He sold his final 0.5% in the holding at the beginning of September, around two weeks before the emissions scandal broke. The share price fell 19% on 21 September, after news emerged the company had been rigging cars to pass emission tests in America. It resulted in 500,000 cars being recalled and VW facing fines of up to $19bn. Although the share price of VW has fallen 28% over the past month, Wright said this has failed t...

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