After a 33% gain in the first half, this fund manager grew tired of the AI trade. Here’s where he’s looking now.

Bill Hench, who led the First Eagle fund to a 33% gain in the first half of the year by investing heavily in AI, is now shifting his focus to small-cap stocks tied to a potential rebound in U.S. housing construction. This move suggests he's wary of the overheated AI sector and is betting on a more stable, long-term growth in the housing market. This shift could indicate a broader trend among investors reassessing their strategies in light of market saturation and regulatory scrutiny in the AI sector.