Fund Evaluator:

Fidelity Advisor Hedged Equity I Overview

Fidelity Advisor Hedged Equity I (FEQJX) is an actively managed Nontraditional Equity Equity Hedged fund. Fidelity Investments launched the fund in 2022.

The investment seeks capital appreciation. The fund normally invests at least 80% of its assets in equity securities. Equity securities represent an ownership interest, or the right to acquire an ownership interest, in an issuer. It invests in common stocks of companies with market capitalizations generally similar to companies in the S&P 500® Index. The adviser uses a disciplined approach designed to construct an equity portfolio with similar risk-return characteristics to the S&P 500® Index.

About Fidelity Advisor Hedged Equity I (FEQJX)

There are 4 members of the management team with an average tenure of 0.09 years: George Liu (2026), Shashi Naik (2026), Anthony Italiano (2026), Anna Lester (2026). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and CBOE S&P 500 Qtr 5% Buf Pr TR USD index with a weighting of 100%. Fidelity Advisor Hedged Equity I has 443 securities in its portfolio. The top 10 holdings constitute 41.1% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Fidelity Advisor Hedged Equity I is part of the Equity global asset class and is within the Nontraditional Equity fund group. Fidelity Advisor Hedged Equity I has 0.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.3%. There is 0.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Fidelity Advisor Hedged Equity I has 0.3% of the portfolio in cash.

Assets Under Management

The fund has $397 million in total assets, which is below the $440 million average for the Equity Hedged category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FEQJX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Advisor Hedged Equity I expense ratio is average compared to funds in the Equity Hedged category. Fidelity Advisor Hedged Equity I has an expense ratio of 0.55%, which is 60% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Advisor Hedged Equity I has a portfolio turnover rate of 56%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 82% for the Equity Hedged category.

Recently, in the month of June 2026, Fidelity Advisor Hedged Equity I returned -1.3%, which earned it a grade of D, as the Equity Hedged category had an average return of -0.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Fidelity Advisor Hedged Equity I has a trailing yield of 0.52%, which is below the 0.93% category average.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Fidelity Advisor Hedged Equity I Grades

Year to date, the fund has returned 8.2%, 2.7 percentage points better than the category, which translates into a grade of A. The fund has returned 16.4% over the past year (grade of A) and 16.1% over the past three years (grade of A).

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