The £2.2bn portfolio run by Graham Spence, Jack Caffrey and Felise Agranoff, trimmed the number of shares in Microsoft over concerns around its “AI competitive positioning”, reported a total return of 10.7% in its net asset value (NAV) in the first six months of the year.

Its shares increased to 9.9%, putting it close to the 11.6% return from the S&P 500 benchmark blaming the slight lag on “market leadership” focusing on companies viewed as direct beneficiaries of the AI investment cycle.

JAM’s interim dividend was held at 2.75p per share.

The fund’s largest exposures were still tech stocks, comprising a third of its portfolio but, the portfolio was repositioned towards “areas with more direct participation in the AI infrastructure buildout and the next phase of AI adoption”.

The manager said: “Leadership shifted towards higher-beta segments of the market with greater economic sensitivity, and to faster-moving parts of the market, particularly providers of semiconductors and memory chips, networking equipment and AI infrastructure”.

It argued that it created an “unusual style dynamic,” which saw value stocks outperform growth despite technology being among the best performing sectors. They credited it to the “exceptional rises” in the shares of selected tech and energy companies rather than “traditional value sectors such as financials”.

They added: “At the same time, higher-beta and momentum-driven stocks materially outperformed more defensive and higher-quality businesses, creating a challenging backdrop for investors such as ourselves, who are focused on quality and valuation discipline”.

JAM initiated positions in Micron Technology, Lam Research and Advanced Micro Devices.

The managers noted they were expecting Advanced Micro Devices’ earning power to “expand meaningfully as its graphics processing unit (GPU) business scales and adoption broadens across enterprise and cloud customers”.

It also opened a position in cloud-based data management platform, Snowflake, noting that it will become “increasingly critical” as AI adoption increases, “creating attractive long-term expansion opportunities for Snowflake from within its large existing customer base”.

The trio explained it had added a “small” position in SpaceX to reflect its “conviction in the company’s leadership in low-cost launch services and the ongoing growth of Starlink” following its record breaking IPO.

They added: “We believe higher launch frequency and lower launch costs should underpin earnings growth, while creating longer-term opportunities linked to space-based computing and AI-related initiatives”.

The trust sold off its shares in Intuit, Oracle and HubSpot to fund its new additions. It highlighted that US businesses are playing a “leading role” in the AI revolution so its repositioning will benefit investors from gains in productivity, corporate revenues and profitability.