Investment Approach

The strategy uses a research-based investment process that seeks to exploit FIAM’s extensive research capabilities to build a bottom-up portfolio of small cap ideas. It seeks small cap stocks with superior growth and financial characteristics that have valuations close to or below the average valuation of the market.

Diversified portfolio

Consistent delivery of exposures to U.S. Small Cap Core equities.

Proprietary research advantage

Leverages Fidelity’s research to construct risk-adjusted small-cap portfolios.

Solid return potential

Seeks small cap stocks with superior growth and financial characteristics at modest prices.

Investment Process

Primary Criteria

  • Market Caps: Generally looking for companies $2.5 billion (USD) or less
  • Identify companies with superior growth and financial characteristics
  • Valuations close to or below the market

Secondary Criteria

  • Strong competitive position in growing niche
  • Hidden assets
  • Entrepreneurial management
  • Large management ownership
  • Small institutional ownership
  • Barriers to entry

Small Company Portfolio

  • Typically 150–250 stocks

Key Facts

Inception Date July 15, 1985
Benchmark Russell 2000
Separate account minimum $50M
Typical tracking error * 4%–8%
Sector constraint None
Security constraint +/- 3.5%
Typical portfolio turnover 40%–80%
Portfolio Managers

Forrest St. Clair
Portfolio Manager

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* Risk metrics shown are provided for illustrative purposes. Risk metrics are not intended to represent performance of the strategy. They are presented gross of any fees and expenses that would apply to an investment in the strategy. Historical risk metrics do not necessarily guarantee future risk profile of the strategy. Please see the fact sheet for net composite performance which includes accounts managed by FIAM and other affiliated advisers, as permitted.
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