Fidelity International has launched the Fidelity Funds European Special Situations Fund, an unconstrained and concentrated equity fund within the Fidelity SICAV, to exploit exceptional mis-valuations of companies. The new pan-European equity fund will be run by Fehim Sever, a former research analyst who has run a similar fund for Canadian investors. He intends to run concentrated portfolio of between 35 and 50 holdings and will look for companies where the potential for structural growth or for change are underestimated or where there is an anomaly in valuation multiples or methodology. The FF European Special Situations portfolio will have a wide geographical coverage and look to exploit opportunities in the markets of New Europe – Eastern, Central and South-Eastern Europe, in particular the Baltics, Russia, Turkey and Greece. FF European Special Situations is at the upper end of the risk spectrum in the Fidelity range of European equity funds. Its closest comparable fund is European Aggressive, another unconstrained and concentrated fund. Michael Jones, head of Financial Institutions at Fidelity International, said: ”We believe the European Special Situations Fund has the fund manager, remit and flexibility to be a top-performing fund in the years ahead, exploiting the opportunities in developed European markets as well as the extraordinary demographic and economic developments in newer European and near-European markets.” The Sterling share class of the FF European Special Situations has an initial charge of 3.5 per cent and an annual management charge of 1.5 per cent. The minimum investment in the fund is £1,000 ($1,936) and £500 for top-ups. Fidelity International, established in Bermuda, manages a total of £148 billion of assets.