Chinese hedge funds rotate out of Nvidia and US hyperscalers in evolving AI trade
China’s biggest hedge funds cut holdings of US hyperscalers and Nvidia and migrated into the hardware makers on the AI supply chain in the second quarter, marking a shift of their playbook on overseas investment in response to evolving market dynamics. Perseverance Asset Management International slashed its position on Nvidia by 72 per cent last quarter, while significantly adding holdings of…
In the evolving landscape of AI investments, Chinese hedge funds have been reallocating their portfolios away from US hyperscalers and Nvidia, shifting towards hardware companies integral to the AI supply chain. Perseverance Asset Management International, a prominent hedge fund, reduced its Nvidia holdings by 72% and significantly increased its investments in Micron Technology and SanDisk in the second quarter.
Similarly, Greenwoods Asset Management Hong Kong and Oriental Harbor Investment, two of China's top-ranked hedge funds, also made comparable adjustments to their portfolios, moving out of major tech stocks and into device manufacturers benefiting from the AI infrastructure buildout. This portfolio reshuffling reflects a more selective approach to investing and a heightened demand for informed stock picks amidst the dynamic global AI trade.
Market observers believe this shift indicates the maturation of the AI investment trade, signaling a transition from broad exposure to identifying companies that truly earn economic rent from AI advancements.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
