Published in the January/February 2012 issue of REIT magazine.
Fidelity Real Estate Investment Portfolio
Manager of Fidelity Real Estate Investment Portfolio since 1997; manages six other funds distributed outside the United States
With Fidelity since 1992
Awards: Morningstar Japan Fund of the Year 2004; Money Observer Best Property Fund 2010
B.A. and M.S. from University of Wisconsin
The Fidelity Real Estate Investment Portfolio fund, which was started in 1986, seeks above-average income and long-term capital growth, consistent with reasonable investment risk. The fund normally invests at least 80 percent of in both domestic and international real estate securities, including REITs.
Steve Buller says a host of quantitative and qualitative factors play into his investment decisions.
“We here at Fidelity very much emphasize bottoms-up and individual stock picking, devoting a lot of time and resources to knowing the company’s management and its strategy; the properties and the fundamentals of the market; the potential cash flow and earnings growth; and the balance sheet strength,” he says.
When it comes to valuations, Buller and other Fidelity managers use a variety of tools for their analysis, including their own ratio of price to
net asset value, dividend yield, and FFO and AFFO multiples.