AI Investment Concentration Risks Challenge Portfolio Diversification

AI investment concentration risks and geopolitical tensions are forcing asset managers to reassess portfolio construction, executives told the Global Financial Leaders’ Investment Summit in Hong Kong.

Lazard Asset Management chief executive Chris Hogbin said geopolitical uncertainty increasingly shapes corporate competitiveness and investment opportunities.

His firm has recruited former military professionals, politicians and political analysts to improve its assessment of these risks.

Schroders chief executive Richard Oldfield warned that heavy investment in AI stocks had distorted valuations and weakened traditional diversification, even as earnings at US companies outside technology remained resilient.

Allianz Global Investors chief executive Tobias Pross cautioned that rising debt and financing needs for AI infrastructure could expose vulnerabilities in credit markets.

For family offices and institutional investors, the comments highlight the need to examine overlapping technology exposures, geopolitical sensitivity and credit risks across asset classes.