"The behavior of investors is not in sync with the market," Sohn said."Theat one point was up 40% this year, [but] it is not being embraced like it was back in 2020 or 2021. There's no euphoria this time around."
Sohn hypothesized that some investors who have tried to ride the broader tech rally in recent years are pulling back in the name of higher interest rates and inflation, looking instead at stricter exposure plays like AI., which has holdings of no more than 3% in the largest mega-cap tech companies. "You don't have as high of a concentration in those names, but those names are really important in the AI space," Maier said.
AIQ is up nearly 37% year to date, garnering $344 million in inflows in 2023. And because data is what's driving AI, Maier said, larger companies like