Bill Hench of First Eagle has decided to move away from investments in artificial intelligence. Instead, he is focusing on small-capitalization stocks that are tied to a potential recovery in the U.S. housing construction sector.
This shift comes after a notable 33% gain in the first half of the year from AI investments, indicating a strategic pivot towards sectors that may benefit from economic recovery.
Watch for how small-cap stocks in the housing sector respond to economic indicators and consumer sentiment. Hench's pivot may signal a broader trend among fund managers, potentially influencing market dynamics as recovery efforts gain traction.