Top Fund Buys Tencent and China Stocks, Sells U.S. Tech Giants
- Nomura Global Equity Fund raises China exposure to about 20%
- Fund has beaten 98% of peers year-to-date: Bloomberg data
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A top-performing global equity fund is picking up battered Tencent Holdings Ltd. shares and doubling down on China as it pares its exposure to some of Wall Street’s biggest tech stocks.
Tencent’s messaging service WeChat is too powerful to ignore, and its shares have fallen far enough, said Peter Chang, vice president at Nomura Asset Management Taiwan Ltd. The $260-million Nomura Global Equity Fund, which has outperformed 98 percent of its peers with an annualized year-to-date return of 4.3 percent, has more than doubled its exposure to China since September on bets government stimulus will boost shares. The fund has reduced some U.S. tech stocks on concern valuations were getting too high.