(Bloomberg) -- GQG Partners LLC has trimmed its exposure to Nvidia Corp.’s stock as part of its risk management strategy, according to portfolio manager Brian Kersmanc.
“We had a very large position in this name earlier in the year and have dialed it back a little bit because we are managing that risk,” Kersmanc told Bloomberg TV in an interview, referring to Nvidia shares. “We’re finding other interesting areas that are giving us pretty good return from a risk-reward perspective.”
Still, the money manager — which has $155 billion of assets under management — continues to like the US chipmaker’s growth outlook. “It’s increasingly becoming a software story over time as well, so that does drive a little bit more secular growth,” Kersmanc added.
Nvidia was the biggest holding in GQG’s portfolios in the June quarter, representing 14% of its total assets, according to 13F filings.
Shares of the chip behemoth have roared back after a period of volatility as it successfully calmed investor concerns about product delays and long-term growth prospects. Investors are expecting another upbeat quarter of earnings from Nvidia next month, with suppliers such as Taiwan Semiconductor Manufacturing Co. seeing continued strength in artificial intelligence-related spending.
--With assistance from Naman Tandon.
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