Since mid-2024, when the Federal Reserve began cutting interest rates, investors have ricocheted in and out of hyper-growth stocks, according to Fidelity Portfolio Manager Ramona Persaud, who prefers categories she views as relatively unaffected by artificial intelligence, GLP-1 drugs, and other categories that have surged in value amid heightened investor interest.
“Rather than following the crowd, I’m more interested in what I consider value-oriented needles in a narrowly focused, expensive haystack,” explains Persaud, who manages Fidelity® Equity-Income Fund (FEQIX). “I’m particularly drawn to companies undergoing significant transformations or facing temporary challenges, even as they quietly build value behind the scenes.”
In managing the diversified domestic equity strategy, Persaud seeks reasonable income while also considering potential capital appreciation. Her generally conservative approach results in a portfolio of value stocks, compounders and higher yielders – all with structural competitive advantages, strong operational execution and disciplined capital allocation.
With this in mind, she highlights GE Aerospace (GE), a maker of jet engines and aviation systems for commercial aircraft, and banking firm Wells Fargo (WFC) as notable turnaround stories within the fund as of April 30, 2026.
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“I’m also keeping a close eye on several structural-growth stories facing temporary setbacks due to external factors,” Persaud adds, citing pharmaceutical maker Eli Lilly (LLY) and Google parent Alphabet (GOOGL).
She explains that these portfolio holdings have been exposed to the GLP-1 and AI booms, respectively, leading to significant share-price volatility and, in turn, creating investment opportunities, as she believes their underlying potential remains strong.
While AI has been top of mind among market participants, Persaud also sees value in corners of the market relatively untouched by this megatrend. For instance, in the financials sector, she believes property & casualty insurance providers offer compelling prospects.
Elsewhere, large-cap health care stocks have faced valuation headwinds due to policy headlines and concerns about the durability of their drug pipelines, according to Persaud. Looking to capitalize on this pullback, she recently added to the fund’s holdings in Merck (MRK), GSK (GSK) and Gilead Sciences (GILD).
“Market participants were simply pricing in too much dire news, from my standpoint,” Persaud concludes. “Many of these health care businesses have inherently higher stability, strong cash-flow generation and high profitability – attributes that align with my investment philosophy.”
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Ramona Persaud is a portfolio manager in the Equity division at Fidelity Investments.
Prior to assuming her current role, Ramona held various other roles within Fidelity, including portfolio manager of Fidelity and Fidelity Advisor Dividend Growth Funds and assistant portfolio manager of Diversified International Fund, based in London. She was also a Select Banking portfolio manager and research analyst, and a Select Construction and Housing portfolio manager and research analyst. Before joining Fidelity, Ramona worked as an analyst at both Morgan Stanley and Goldman Sachs. Ramona joined Fidelity in 2003 and has been in the financial industry since 1996.
Ramona earned her Bachelor of Science from Polytechnic Institute at New York University and her Master of Business Administration from The Wharton School of the University of Pennsylvania.