7 months ago
Fidelity Fund Beats Peers with Japan AI Stocks
A fund manager named Dale Nicholls runs a big investment fund called the Fidelity Funds Pacific Fund.
He has put a lot of money into smaller Japanese companies that are connected to artificial intelligence (AI).
These companies are doing well, and the fund has made more money than 96% of similar funds.
One of the top companies in the fund is Fujibo Holdings, which makes special pads used in making computer chips.
Fujibo's stock has gone up a lot, and it's still not as expensive as some bigger companies.
Nicholls thinks there are more opportunities in these smaller Japanese companies, even though they can be riskier.
He believes they will keep growing because of the AI boom.
Fidelity Funds Pacific Fund, managed by Dale Nicholls, has 23% invested in Japanese stocks, the most for any country.
The fund has outperformed 96% of its peers in the past year.
Top holding Fujibo Holdings Inc. has seen its shares rise twice as fast as the benchmark Topix index.
Fujibo generates 45% of its revenue from polishing materials used in AI-related products.
Nicholls sees potential in smaller Japanese companies benefiting from AI, despite higher risks.
- Who
- Dale Nicholls, manager of the Fidelity Funds Pacific Fund
- What
- Investment in Japanese AI-related smaller companies
- Where
- Japan, with a focus on smaller tech firms
- When
- Past year, with significant gains
- Why
- To capitalize on the AI boom and affordable valuations
Key facts
- Fund Name
- Fidelity Funds Pacific Fund
- Fund Manager
- Dale Nicholls
- Fund Size
- $944 million
- Top Holding
- Fujibo Holdings Inc.
- Japan Investment
- 23% of the fund
- Performance
- Beaten 96% of peers in the past year
- Fujibo's Revenue from Polishing Materials
- 45%
- Fujibo's Stock Performance
- 80% increase in the past year
Quotes
Dale Nicholls
Fund manager of the $944 million Fidelity Funds Pacific Fund
“Japan is always a great stock-picking market. If you look into it, there are many names in the tech space, particularly at the smaller end. I still think their competitiveness is under-appreciated.”
livemint.com
“I do think there’s room to increase weightings there. I’ll say that I’m increasingly finding more opportunity in Japan amongst the smaller caps, particularly in growth areas.”
livemint.com
Sources
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