2022 was filled with several market disruptors. Russia invaded Ukraine, the Federal Reserve hiked interest rates for the first time since 2018, and inflation hit decade highs. These factors led to a macro-driven market environment, as investors focused heavily on where central banks were heading next. Our guests today say 2023 has already shown signs of a momentum shift, and they are optimistic that a stock-picking environment could soon be back on the table. Joining us today to break down where they are seeing long-term leaders, and how long-term leaders have changed over the last year are Fidelity’s Managing Director of Research and portfolio manager Charlie Hebard, and Quantitative Analyst and portfolio manager Michael Kim. Charlie and Mike speak with host Pamela Ritchie and reiterate the types of companies that can be found in Fidelity Long-Term Leaders Fund. They are looking for franchise stocks to hold for a 3 – 5 year investment horizon, not swapping in and out every quarter. Charlie notes that earnings are going to drive stock and they want to find names that have the potential to outperform their peer group. Mike also notes the advantages of being diversified, noting that the fund does have a large and mid-cap bias, but small-caps are attractive especially when coming out of a recession. Is one coming? Charlie and Mike also look at this and more today.

Recorded on February 28, 2023.

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