Fidelity, Nicholas-Applegate debut 130/30 funds

Date: Tuesday, April 8, 2008
Author: Pionline.com

Fidelity Investments and Nicholas-Applegate Capital Management separately announced the launch of new 130/30 mutual funds.

Fidelity’s 130/30 Large Cap mutual fund is the company’s first mutual fund to engage in short selling. Spokesman Alexi Maravel said the new fund’s strategy will combine fundamental research and quantitative models. Fidelity’s institutional arm, Pyramis Global Advisors, offers 130/30 strategies that are strictly fundamental. Keith Quinton, a seven-year Fidelity veteran, will manage the 130/30 Large Cap fund. Mr. Quinton also manages the $12 billion Fidelity Disciplined Equity fund as well as a number of institutional portfolios over a 25-year career, Mr. Maravel said.

Nicholas-Applegate’s global 130/30 mutual fund is the manager’s first 130/30 mutual fund. The strategy was seeded on Jan. 1, 2007, and after more than a year of strong performance, executives are ready to offer the mutual fund to investors, said CEO Marna Whittington. The strategy returned 5.8% in the fourth quarter, beating the MSCI ACWI by 750 basis points. For the year ended Dec. 31, the strategy returned 40.2%, beating the index by 2,800 basis points. The firm filed the mutual fund prospectus on April 1. The fund is open to both institutional and retail investors who can meet the $250,000 minimum, said spokeswoman Susan Hunter. NACM also offers 130/30 in a separate account format, said Ms. Hunter.