<\/p>\n
Coronation Asset Management, which oversees R773 billion, has trimmed its exposure to chipmakers and increased its allocation to India, as expectations for artificial intelligence stocks have risen to levels that are nearly impossible to beat.<\/p>\n
The South African money manager\u2019s R51 billion Global Emerging Markets Fund cut its combined weighting in SK Hynix and Taiwan Semiconductor Manufacturing to around 5% in the second quarter from about 8% at the end of December.<\/p>\n
\u201cWe are finding very little margin of safety in most Taiwanese and South Korean stocks today as was the case with Indian stocks in 2024\/2025 and Chinese stocks in 2020,\u201d Gavin Joubert, Iakovos Mekios and Suhail Suleman, who run the fund said in a note.<\/p>\n
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The move enabled the managers to increase the fund\u2019s exposure to India after the market had \u201cde-rated sharply following a prolonged period of pessimism tied to geopolitical and economic concerns,\u201d they said. The allocation was raised to just under 12%, with the fund re-establishing a position in Mahindra & Mahindra, which it views as a turnaround story after a weak agricultural season and broader economic slowdown. It also increased its holding in Bajaj Finance, HDFC Bank and ICICI Bank<\/p>\n
Coronation\u2019s retreat from one of the world\u2019s hottest trades mirrors growing investor skepticism about the sustainability of the AI rally, which has concentrated emerging-market portfolios in chipmakers at the expense of other sectors and markets.<\/p>\n
Franklin Templeton\u2019s main emerging equity fund has also scaled back on chipmakers\u2019 shares and is now favouring Chinese internet names such as Alibaba Group Holding and Tencent Holdings.<\/p>\n
SK Hynix, the poster child of this year\u2019s boom, has been hit by South Korean authorities\u2019 efforts to contain a retail trading frenzy. The stock has slid almost 40% from its June peak.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#Coronation #cuts #bets #buys #India #rebound<\/p>\n","protected":false},"excerpt":{"rendered":"
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