The Fidelity Global Equities Fund has delivered 16.49%* year to date. Amit Lodha, Portfolio Manager of the Fidelity Global Equities Fund has an extremely disciplined approach to investing and in this article he explains his largest holding*.
Why is Apple your largest holding?
Apple is one of the largest companies in the world and Amit’s view of Apple has changed over time to a more contrarian value approach.
“Steve Jobs was the core driver of innovation. Innovation has been poor since his untimely death.” Amit Lodha says.
What’s attracting Amit back to Apple? Quite simply it is less loved by the market, and while innovation may be waning, there are other attractions to the stock.
As many Apple users can relate to, it is very difficult to get out of the iPhone ecosystem, ensuring that there is an annuity of revenue stream which guarantees good cash flows. There has also been consistent delivery of capital to shareholders through buy backs.
While sales of the iPhone 7 were disappointing, Amit is looking forward to the iPhone 8 cycle and what new technology it will bring.
Apple is currently the largest holding in the portfolio* however Amit is extremely disciplined on valuations and when valuations get too high he will exit the stock.
Hear from Amit directly on the above in this short video.