Many analysts claim a lack of investment in new capacity should keep oil & gas prices high, but the Fidelity Special Values manager said this doesn’t automatically equate to higher returns.
Fidelity’s Alex Wright has already sold out of most of his position in Shell, citing its failure to cut costs and its expansion into less profitable areas as reasons for concern.
The manager of the Fidelity Special Values trust and Fidelity Special Situations fund bought into oil & gas stocks on valuation grounds following the collapse of the oil price in 2020, just as he did when it fell in 2015.
Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.