Fidelity's Nicholls bets on Alibaba and ByteDance

Predicts short-term slowdown

Elliot Gulliver-Needham
clock • 3 min read
Dale Nicholls, portfolio manager of the Fidelity China Special Situations trust
Image:

Dale Nicholls, portfolio manager of the Fidelity China Special Situations trust

The recent tech stock drop in China has left opportunities to scoop up big names in the sector, said Dale Nicholls, portfolio manager of the Fidelity China Special Situations trust.

In a portfolio update today (26 May), Nicholls argued that despite negative market sentiment there were strong opportunities in the country, stating that he had increased his personal holdings in the trust and risen net gearing for the portfolio up to over 124%. Nicholls noted that factoring out the value of cash and investments, Alibaba "is trading at a single digit price/earnings ratio. Although it does face some competitive challenges, it remains the dominant platform in China and generates very high returns on capital". He went on to argue that despite "plenty of challenges that a...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot