The Fidelity Event Driven Opportunities Fund seeks capital appreciation by investing in companies involved in corporate events, such as corporate reorganizations, changes in beneficial ownership, and deletion from a market index. Event-driven investing attempts to take advantage of mispricing in a company's stock that that may result from these events.
The fund is focused on company-specific events instead of market events, which may be less influenced by macroeconomic conditions over the long term. This lower correlation of event-driven securities may increase attractiveness to investors who are seeking portfolio diversification. Unlike other event-driven strategies that may focus on a single event or special situation, the fund seeks exposure to companies that may be involved in multiple events.
Types of events and the potential opportunity
|What is the event?||What is the potential opportunity?|
|Corporate spinoffs||Creation of an independent company through the sale or distribution of new shares of an existing business/division of a parent company||
|13D filings||Required SEC filing when an investor purchases 5% or more of a company's shares||
|Index deletions||When a firm is deleted from an equity index, such as the S&P 500||
The fund may also invest in other special situations not shown.
Who may want to invest
The Fidelity Event Driven Opportunities Fund may be appropriate for sophisticated investors seeking capital appreciation through exposure to companies involved in corporate events, with potentially lower correlation to the broader equity market over time.