Franklin Templeton Cuts $14 Billion Fund's AI Bets, Favors Chinese Internet Stocks
Updated
Updated · Bloomberg · Jul 17
Franklin Templeton Cuts $14 Billion Fund's AI Bets, Favors Chinese Internet Stocks
2 articles · Updated · Bloomberg · Jul 17
Summary
Franklin Templeton shifted its main emerging-market equity fund to a neutral stance on AI supply-chain stocks, ending a long-standing overweight position.
Chetan Sehgal, who oversees more than $14 billion across several emerging-market portfolios, said the firm trimmed memory-chip holdings after their sharp rally.
Alibaba and Tencent are now among the preferred names as the manager rotates into Chinese internet platforms that investors have largely avoided this year.
The move reflects a valuation-driven pivot away from AI hardware winners toward lagging Chinese tech stocks in emerging markets.