Fidelity International Small Cap Opportunities Fund Q1 2025 Review

2025-05-06 16:28:00 ET

Summary

• For Q1 2025, Fidelity International Small Cap Opportunities Fund's Retail Class shares gained 2.45%, trailing the 3.74% advance of the benchmark MSCI EAFE Small Cap Index (Net MA).
• International small-cap stocks ended Q1 with a solid gain, aided by a weaker U.S. dollar and capital inflows that propelled foreign markets higher.
• The portfolio's geographic positioning remained fairly consistent the past three months.

Investment Approach

• Fidelity® International Small Cap Opportunities Fund is a diversified international equity strategy with a small- to mid-cap growth orientation.
• Our investment approach targets companies with multiyear structural growth prospects, high barriers to entry and attractive valuations based on our earnings forecasts.
• Investment ideas typically fall into three main categories: structurally attractive growth themes, where investors may be underestimating the durability of growth drivers and long-term earnings power; cyclically out-of-favor companies with limited competition and pricing power, where investors may be focusing on near-term cyclical concerns and discounting long-term prospects; and companies with strong earnings potential whose share prices have fallen due to macroeconomic events.
• We strive to uncover these companies through in-depth fundamental analysis, working in concert with Fidelity's global research team, with the goal of capturing market upside while limiting downside participation.

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