As we enter the second quarter of 2015, special events, such as M&A have continued to remain a focus on Wall Street. For mutual fund investors seeking a different approach to the current investing environment, an event-driven mutual fund may be a good option.
This week, we have chosen the Fidelity® Event Driven Opportunities Fund (FARNX) as the fund of the week.
Inside the Fund
The fund was launched in 2013 and is managed by Arvind Navaratnam. Currently, it has about $188 million in assets under management (AUM).
The majority of the fund’s holdings are smaller sized companies that are based in the United States. Nearly a quarter of the fund’s portfolio holdings are in the consumer cyclical industry.
Historical Performance
| 2014 | YTD |
|---|---|
| 9.23% | 3.4% |
Largest Holdings
| Symbol | Stock | Portfolio Weight | YTD Performance |
|---|---|---|---|
| UVV | Universal Corp | 8.32% | +9% |
| CNSI | Comverse Inc | 4.19% | +21% |
| ALLE | Allegion PLC | 2.03% | +8% |
| MANT | Mantech International Corp | 1.84% | +8% |
| NEWM | New Media Investment Group | 1.43% | -8% |
The Bottom Line
For investors seeking exposure to events within the market, a mutual fund like the Fidelity® Event Driven Opportunities Fund may be a good pick.
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