Fidelity Select Communication Services Portfolio Q1 2025 Review

2025-05-07 02:28:00 ET

Summary

• Fidelity Select Communication Services Portfolio fund's Retail Class shares returned -5.05%, trailing the -3.97% result of the MSCI U.S. IMI Communication Services 25/50 (Media Linked) Index and the -4.27% return of the broad-based S&P 500® index.
• The communication services sector returned -3.97% in the first quarter, according to the MSCI U.S. IMI Communication Services 25/50 (Media Linked) Index, modestly outpacing the -4.27% result of the broad-based S&P 500® index.
• At the end of Q1, the fund is positioned in stocks of companies that we believe can deliver durable growth and have a sustainable competitive moat.

Investment Approach

• Fidelity® Select Communication Services Portfolio is a sector-based, equity-focused strategy that seeks to outperform its benchmark through active management.
• We employ a bottom-up, stock-by-stock approach to capitalize on our view that growth and revisions to earnings and free cash flow per share drive communication services stocks. As such, the fund tends to emphasize companies with sustainable growth that is likely to beat expectations, as well as secular growers that can drive consistent excess returns.
• We use fundamental analysis, supported by Fidelity's deep and experienced global technology, media and telecommunication team, to identify stocks that we believe have the greatest dislocation between long-term earnings-growth potential and valuation.
• Sector strategies could be used by investors as alternatives to individual stocks for either tactical- or strategic-allocation purposes.

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