The man managing $47 billion of state investments is sceptical of United States technology stocks like Tesla and Nvidia that are being fueled by artificial intelligence hype.
“History tells us that where there’s technological change going on like that, it’s hard to capture it all, and that the people who are the early adopters aren’t necessarily the long term winners,” ACC chief investment officer Paul Dyer told Markets with Madison.
“We look back to the previous tech bubble 20 years ago and that pattern’s very prevalent.”
The ACC’s fund is half weighted to bonds, with about one-third made up of domestic and global equities, including almost $1 billion worth of stock in Alphabet (Google’s parent), Microsoft and Apple. That portion was managed by eight external investment managers.
“They’ve tended to be light on those stocks rather than heavy and we can understand why.