Investing Ideas

Developing equity extension strategies through systematic fundamental alpha capture

An equity extension approach built on Fidelity’s heritage and history of fundamental research and portfolio management.

By: Brian Henze Matthew Torrey

Updated: 3/26/2026

Key Takeaways

Equity extension strategies target benchmark-plus returns by pairing long and short equity exposure without increasing overall market risk.
Fidelity Fusion Alpha Equity Extension seeks to generate excess returns using fundamental alpha capture in a long-short portfolio with beta-one exposure.
The Fidelity equity extension strategy uses a unique internal alpha capture program to harness Fidelity’s best fundamental ideas to pursue a differentiated source of alpha.
Fidelity’s offering seeks alpha that is driven by fundamental research, highly differentiated, scalable, and focused on idiosyncratic returns, rather than broad-market factors or style factors.

Get the full white paper

Developing equity extension strategies through systematic fundamental alpha capture

Next steps to consider

Investment strategies by asset class

Face your most complex challenges head on with help from our strategies and custom solutions across asset classes.

Learn more

Alternative investment strategies

Discover a wider range of new investment opportunities with our growing lineup of alternative investments.

Learn more

Custom investment solutions

Discover how our investment solutions can be tailored to meet your unique goals and objectives.

Learn more

Related insights

View all

Thoughts on the software reset for private credit

Fidelity’s direct lending team explores current conditions for software equities following a sharp decline, and where they are finding opportunities in more resilient segments of the market.

Investing Ideas

Subordinate debt and the new era of real estate investing

Strong fundamentals, constrained bank lending, and reset property values have created opportunities for private credit investors

Investing Ideas

Emerging opportunities in real estate debt

Commercial real estate fundamentals look healthy outside of the office sector while sentiment has been improving.

For important information, see the full linked content.

1252268.1

C7BC16ECBB1B44B5820BCC5C3CB46B39

This information is intended for the sole use of institutional investors. Retail investors and any other persons who are not institutional investors should not act or rely on this information.

This site provides information solely for institutional investors and consultants regarding the products and services of the Fidelity Investments companies of FIAM LLC, a U.S. registered investment advisor, or Fidelity Institutional Asset Management Trust Company, a New Hampshire trust company. By viewing, you agree that you are an institutional investor or consultant and agree to the Institutional Investor web site Terms of Use.

Past performance is no guarantee of future results.

Unless otherwise expressly disclosed to you in writing, the information provided in this material is for educational purposes only. Any viewpoints expressed by Fidelity are not intended to be used as a primary basis for your investment decisions and are based on facts and circumstances at the point in time they are made and are not particular to you. Accordingly, nothing in this material constitutes impartial investment advice or advice in a fiduciary capacity, as defined or under the Employee Retirement Income Security Act of 1974 or the Internal Revenue Code of 1986, both as amended. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in the products or services and may receive compensation, directly or indirectly, in connection with the management, distribution, and/or servicing of these products or services, including Fidelity funds, certain third-party funds and products, and certain investment services. Before making any investment decisions, you should take into account all of the particular facts and circumstances of your or your client's individual situation and reach out to an investment professional, if applicable.

Registered investment products (including mutual funds and ETFs) and collective investment trusts managed by Fidelity Management Trust Company (FMTC) are offered by Fidelity Distributors Company LLC (FDC LLC), a registered broker-dealer. Fidelity Institutional Asset Management (FIAM) investment management services and products are managed by the Fidelity Investments companies of FIAM LLC, a U.S. registered investment adviser, or Fidelity Institutional Asset Management Trust Company, a New Hampshire trust company. FIAM products and services may be presented by FDC LLC, a non-exclusive financial intermediary affiliated with FIAM and compensated for such services.