LongRun Equity Fund / Rothschild & Co Investment Managers on Tencent
Thesis
LongRun believes Tencent is well positioned to benefit from AI because its businesses provide platforms through which AI can be implemented and monetised. The manager believes Tencent's individual business lines and the broader ecosystem collectively lend themselves well to AI monetisation. Recent weakness related to concerns about the Chinese economy and increased AI spending has therefore not changed the fund's positive view of the company's underlying opportunity.
“We are strong believers in businesses that provide platforms for AI implementation.”
Key risks
- Macroeconomic concerns surrounding the Chinese economy
- Increased spending on AI