Lazard Fund Beating 93% of Peers Adds Samsung During Memory Rout

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessLazard Fund Beating 93% of Peers Adds Samsung During Memory RoutThe manager of a $9.6 billion Lazard Asset Management fund used the July plunge in Samsung Electronics Co. to add the stock to her portfolio for the first time in more than a year.Author of the article:Sangmi Cha and Elaine Lai You can save this article by registering for free here. Or sign-in if you have an account.1i3xn(jy0z(r1qb1hi6sgq3d_media_dl_1.png Bloomberg(Bloomberg) — The manager of a $9.6 billion Lazard Asset Management fund used the July plunge in Samsung Electronics Co. to add the stock to her portfolio for the first time in more than a year.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountMonika Shrestha, who co-manages the Lazard Emerging Markets Equity Portfolio, is betting the memory-chip upcycle that fueled windfall profits at Samsung has room to run through 2028. Her fund beat 93% of peers over the past month and 98% over the last five years, according to data compiled by Bloomberg.Samsung’s recent slide was “an opportunity to buy” at an attractive level, Shrestha said in an interview. While overcrowding and wild volatility have spooked investors on the AI theme, she sees the overall narrative of Big Tech spending fueling strong chip sales as still intact.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Memory price increases will be slower, but the overall memory market still favors higher prices,” the fund manager said. “There’s no sign of demand in the hyperscaler capex slowing down.”Shrestha said Samsung is “very much a bottom-up call,” noting the stock’s appealing valuations and high return on equity. Its projected ROE has surged to a record high of more than 50%, compared with about 35% for the Philadelphia Semiconductor Index of global chip peers.Staying underweight tech relative to the benchmark MSCI Emerging Markets Index helped cushion Shrestha’s fund through the July rout. She trimmed SK Hynix Inc. after its sharp run-up and redeployed gains into energy firms including Petroleo Brasileiro and Vista Energy, Chinese consumer names and financials.SK Hynix is still the fund’s second-largest holding, following Taiwan Semiconductor Manufacturing Co. The Lazard vehicle has more than 60% exposure to emerging Asia, with large allocations in China, Taiwan and South Korea.The threat of stronger competition from Chinese memory makers including CXMT Corp. that rattled the AI trade in the past few weeks is a risk to pricing power longer term, Shrestha said. Nonetheless, she remains bullish on the memory theme and sees Samsung as good value.Samsung’s stock is down 36% from its all-time high. But the share price remains nearly 230% higher than a year ago after frenzied investor buying of memory plays. This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.