Risk assets bounced back in the first quarter of 2023 - but returns did not come without volatility. Equity markets seem to be leaning more towards an easing scenario later in the year, whereas rate markets are more skeptical around the path forward. This continued uncertainty has encouraged investors to seek out new forms of diversification and strategies which are better equipped to navigate a potentially bumpy road. Joining us today to talk about one of Fidelity Canada’s equity long/short offerings is David Way, portfolio manager of Fidelity Long/Short Alternative Fund. David joins host Rory Poole, Director, Alternatives, and shares that the two sleeves (long and short) come together to generate a portfolio that really does not rely on the use of additional leverage. The fund does not contain any financial leverage beyond what's generated by shorting stocks, generating cash, and investing more in Fidelity's best long ideas. David focuses on opportunities where he feels there is material mispricing because of the uncertainty in the market. Also, he is valuation sensitive, but willing to invest in companies at higher valuations if they show strong and durable growth.

Recorded on April 6, 2023.

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