Fidelity China Special Situations suffers heavy losses

As China enters a bear market, Fidelity China Special Situations (LON:FCSS) has fallen in unison, now down over 20% from intraday highs seen in late May.

The Investment Trust that counts Tencent Holdings, Hutchinson China Meditech and China Pacific Insurance among its top ten holdings, enjoyed strong gains earlier this year after spending much of its time since the IPO underwater.

Initially set up by Anthony Bolton, the fund set about focusing on the Chinese consumer, an investment theme that didn’t catch on for several years after the start of trading.

Anthony Bolton handed the reins to Dale Nicholls earlier this year who say’s “From my ten years of investing in China, I struggle to think of a better time to find opportunities.”

This will be of little comfort to investors who have recently purchased the fund. However his predecessor offers a rational stance on any volatility observed in Chinese stocks.

“Investment is an odds-game. You are trying to make more good decisions than bad decisions, but you will make more bad decisions. No one can do well all the time, everyone has difficult patches” said Bolton in an interview with Share Radio.

It appears the difficult patches have returned, the question is, for how long?

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