Nancy Tengler, the chief investment officer of Laffer Tengler Investments, said she is trimming the fund’s Google position to take profits.
This move signals a tactical shift for the firm as it navigates a volatile technology sector. By locking in gains during a period of high valuation, the fund seeks to protect its capital while maintaining a strategic presence in the artificial intelligence space.
Tengler discussed the decision during an appearance on CNBC’s Power Lunch on Tuesday. She said the decision was driven by a desire to capture gains following a strong AI-driven rally in technology stocks [1].
"We're trimming Google to take some profits," Tengler said [1].
Laffer Tengler Investments manages approximately $1.6 billion in assets [2]. The firm's strategy involves balancing immediate profit-taking with a long-term outlook on the growth of the tech industry.
While the fund is reducing its current exposure, Tengler said the move is not a complete exit from the company. She said the firm continues to view the broader technology landscape as a core component of its investment strategy.
"Our portfolio is positioned for the long term, but we are taking profit on Google now," Tengler said [2].
The decision to trim holdings comes as many institutional investors evaluate the sustainability of the current AI boom. Many firms are now choosing to rebalance their portfolios to mitigate the risk of a potential correction in overextended tech stocks.
“"We're trimming Google to take some profits."”
The decision to trim a position in a high-performing asset like Google suggests that professional fund managers are increasingly cautious about the current valuation of AI-related stocks. By converting unrealized gains into realized profits, Laffer Tengler Investments is reducing its risk exposure to a potential market pullback while keeping enough capital in the sector to benefit from long-term growth.
