China AI Giants Offer Better Value Than US Peers, Top Fund Says

A top-performing emerging markets fund is increasing its exposure to major Chinese artificial intelligence hyperscalers, betting they offer better value than US tech giants that are pouring vast sums into expansion.

Caroline Cai, chief executive officer of Pzena Investment Management, said her $3.9 billion fund has been adding digital platform companies such as Tencent Holdings Ltd. and Alibaba Group Holding Ltd. The firms look inexpensive and offer more upside given their potential to transform everyday life, she said.