A Top Fund Bullish on Chinese AI Giant, Says Its Investment Value Outperforms US Counterparts

An emerging market fund with outstanding performance is increasing its holdings in major Chinese artificial intelligence companies, believing that these firms offer more attractive investment opportunities compared to the US tech giants that are spending heavily on expansion. Caroline Cai, CEO of Pzena Investment Management, said her $3.9 billion fund has been steadily increasing its positions in digital platform companies like Tencent Holdings and Alibaba, considering their valuations to be undervalued and their potential to transform daily life suggests greater upside. Data shows that Pzena’s emerging market value fund has outperformed 97% of its peers over the past five years and has also performed better than 90% of competitors this year. The fund’s main holdings include Samsung Electronics, TSMC, and Alibaba. Cai manages approximately $67 billion across all of the firm’s products. She stated that some of the funds used to increase holdings in Alibaba and Tencent came from reducing positions in Samsung and TSMC, as the attractiveness of these two companies has diminished compared to before. Regarding Samsung Electronics, the investment logic was realized earlier than expected as AI demand pushed up memory chip prices.