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AI Skeptic Rajiv Jain Reverses Course, Embraces Tech After Costly Bearish Stance
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Moneycontrol•28-09-2026, 22:19
AI Skeptic Rajiv Jain Reverses Course, Embraces Tech After Costly Bearish Stance
- •Rajiv Jain, founder of GQG Partners, has significantly increased his firm's technology stock allocation after previously shunning the sector and calling the AI boom a “dot-com bubble on steroids.”
- •The pivot follows an 18-month period where his bearish AI view caused GQG funds to underperform peers, leading to $36 billion in outflows and a plummeting share price.
- •GQG more than tripled its tech allocation in its emerging-market fund to about 35% in August and increased tech holdings in its flagship international equity fund to 28% from 5.4% in July.
- •Jain cited improved valuations, stronger demand for computing power, and a rebound in graphics processing unit prices for his change of heart, acknowledging he had underestimated some factors.
- •The move, though risky and potentially leading to further short-term outflows, aligns with Jain's history of bold portfolio overhauls and adaptability to market changes.
Key Questions Answered
Rajiv Jain reversed his bearish AI stance due to improved valuations, stronger demand for computing power, a rebound in graphics processing unit prices, and better-than-expected margins from hyperscalers like Alphabet and Microsoft.
GQG more than tripled its tech allocation in its emerging-market fund to about 35% in August, while tech companies rose to 28% in its flagship international equity fund. To fund this reshuffle, Jain pared positions in Brazil and India.
Jain's bearish view caused his funds to trail their benchmarks and erased their long-term outperformance, prompting investors to yank $36 billion from his funds since mid-2025 and driving GQG's share price to record lows.
