UPDATE 1-Fidelity's Rossi says to buy U.S. stocks despite rout
* Hedge funds have exacerbated equity sell-off - Fidelity's Rossi
* Rossi sees U.S. equities hitting new highs in 2015
* Current sell-off is "mid-market correction" - Rossi
* Europe under pressure but weak euro should help -Rossi (Adds further comments and background)
By Sudip Kar-Gupta
LONDON, Oct 16 (Reuters) - The underlying strength of the U.S. economy should enable U.S. stocks to recover from this week's sell-off, said Fidelity Worldwide Investments' Dominic Rossi, which he said had been made worse by hedge funds' "poor" trades.
Stocks in Europe and U.S. equity futures extended their losses on Thursday, after Wednesday's global market rout, mainly caused by mounting concerns over the strength of the global economy.
The triggers for the equity sell-off had been a rise in the U.S. dollar and expectations of an eventual U.S. rate rise, said Rossi, global chief investment officer for equities at Fidelity Worldwide Investments, which manages $290 billion in assets, though he also blamed other funds' trading strategies.
"The structural factor that has triggered this relates to U.S. dollar and tightening financial conditions, but the market correction has been exaggerated by poor positioning," said Rossi. Continuación...