Fidelity Fund Beating 96% of Peers Likes Japan’s AI-Linked Firms

Japanese shares’ ascent to record highs at the start of the year has reinforced a Fidelity International fund manager’s preference for smaller AI-related companies that still look affordable.

The $944 million Fidelity Funds Pacific Fund, run by Dale Nicholls, has about 23% of its investments in Japanese stocks, the most for any country. It’s beaten 96% of its peers in the past year, data compiled by Bloomberg show. One of its top holdings is Fujibo Holdings Inc., which makes polishing pads needed for chip devices and the company’s shares have risen twice as fast as the benchmark Topix index in the past year.