Fund with good performance in AI-related technology stocks withdraws from the overheated sector

October 3, 2024 13:16 JST (excerpt)
Lombard IM's Asia Fund outperforms 98% of similar funds with strong performance, pointing out the potential for positivity in the long term but negativity in the short term due to overvaluation.
A top fund in Asia that has delivered strong performance driven by artificial intelligence (AI) related technology stocks is temporarily retreating from investments in this overheating sector.
Fei Gao, co-manager of the 'Asia High Conviction Fund' at Lombard Odier Investment Managers, disclosed in an interview that they have 'reduced' exposure to the information technology (IT) sector due to 'global geopolitical tensions and uncertainties surrounding macroeconomic demand'. The fund achieved a return of approximately 27% this year, surpassing 98% of similar funds. Over the past five years, it has delivered a return of 5.7%.
Instead, Gao stated that they have been expanding investments in India's resilient domestic-led economy and steadily growing platform technology companies in China, since joining the same fund's management a year ago.