Key Takeaways
- • FGLS trades on NEO Canada exchange at CAD 7.87, with assets under management of CAD 55.16 million and fund flows of CAD 18.15 million over the past year.
- • The fund employs an active long/short equity strategy with a target net long exposure not exceeding 300% of net assets, holding 100–150% long and up to 50% short positions.
- • Geographic exposure is heavily concentrated in developed markets, with the United States representing 45.6% net exposure, followed by significant positions in the United Kingdom (14.0%), Canada (10.1%), France (6.5%), and China (3.6%).
- • The fund carries a 1.91% expense ratio and is structured as a Canadian Mutual Fund Trust with inception dated February 1, 2024, managed by Fidelity Investments Canada ULC.
- • Year-to-date performance shows a decline of 6.09%, with intraday trading showing minimal movement of +0.13% and a 52-week low of CAD 7.33, trading at a 0.3% discount to NAV.
Summary
The Fidelity Global Value Long/Short Fund (NEO:FGLS) is a newly launched Canadian alternative equity strategy that commenced operations on February 1, 2024. Managed by Fidelity Investments Canada ULC, the fund represents an active, high-conviction approach to global equity investing with integrated short-selling capabilities. As of the reporting period, FGLS maintains assets under management of CAD 55.16 million, with positive fund flows of CAD 18.15 million recorded over the trailing twelve-month period.
The fund's investment mandate centers on identifying discount-valued equities for long positions while simultaneously identifying premium-valued securities for short positions, primarily across developed markets. The portfolio structure targets net long exposure not exceeding 300% of net assets, with typical positioning of 100–150% long and up to 50% short. This leverage-enabled framework allows the strategy to express both bullish and bearish convictions simultaneously. The fund maintains flexibility to invest across equities of all sizes, emerging markets, fixed income securities, and derivatives, with capacity for risk arbitrage including merger arbitrage strategies. Securities lending, repurchase agreements, and reverse repurchase transactions are permitted within the fund's operational framework.
Geographic positioning reflects a pronounced tilt toward U.S. equities, which account for a net exposure of 45.6% after accounting for long and short positions. The United Kingdom and Canada represent secondary concentrations at 14.0% and 10.1% net exposure respectively, with supplemental exposure to France (6.5%) and China (3.6%). The fund's expense ratio of 1.91% is positioned within the alternative investment management landscape, reflecting active management and leverage utilization costs.
Trading data as of February 8, 2024, shows FGLS trading at CAD 7.87 per share with minimal intraday momentum of +0.13%, though year-to-date performance reflects a 6.09% decline. The fund trades at a marginal 0.3% discount to net asset value, with 7.03 million shares outstanding. The 52-week low stands at CAD 7.33, and recent trading volumes averaged 26,579 shares per session. The fund is structured to distribute capital gains and distributes income to unitholders on a periodic basis, though a current dividend yield is not indicated.
The fund's investment mandate centers on identifying discount-valued equities for long positions while simultaneously identifying premium-valued securities for short positions, primarily across developed markets. The portfolio structure targets net long exposure not exceeding 300% of net assets, with typical positioning of 100–150% long and up to 50% short. This leverage-enabled framework allows the strategy to express both bullish and bearish convictions simultaneously. The fund maintains flexibility to invest across equities of all sizes, emerging markets, fixed income securities, and derivatives, with capacity for risk arbitrage including merger arbitrage strategies. Securities lending, repurchase agreements, and reverse repurchase transactions are permitted within the fund's operational framework.
Geographic positioning reflects a pronounced tilt toward U.S. equities, which account for a net exposure of 45.6% after accounting for long and short positions. The United Kingdom and Canada represent secondary concentrations at 14.0% and 10.1% net exposure respectively, with supplemental exposure to France (6.5%) and China (3.6%). The fund's expense ratio of 1.91% is positioned within the alternative investment management landscape, reflecting active management and leverage utilization costs.
Trading data as of February 8, 2024, shows FGLS trading at CAD 7.87 per share with minimal intraday momentum of +0.13%, though year-to-date performance reflects a 6.09% decline. The fund trades at a marginal 0.3% discount to net asset value, with 7.03 million shares outstanding. The 52-week low stands at CAD 7.33, and recent trading volumes averaged 26,579 shares per session. The fund is structured to distribute capital gains and distributes income to unitholders on a periodic basis, though a current dividend yield is not indicated.
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