Rajiv Jain, who built GQG Partners into a $150 billion investment firm, has significantly changed his investment strategy by embracing technology stocks, a sector he had largely avoided. This pivot, which accelerated in August, comes a year after he publicly criticized the artificial intelligence boom as a "dot-com bubble on steroids." The shift follows a challenging 18-month period where his bearish AI view caused his funds to underperform benchmarks and led to $36 billion in investor outflows since mid-2025, sending GQG's share price to record lows.
GQG has substantially increased its technology allocation, tripling its tech exposure in its emerging-market fund to approximately 35% in August. Its flagship international equity fund now has 28% of its holdings in tech companies like Taiwan Semiconductor Manufacturing Co. and Samsung Electronics, up from 5.4% in July, making it overweight in the sector. To finance this reallocation, Jain reduced significant positions in other areas, such as Brazil and India, which reportedly exacerbated declines in some Brazilian stocks.
Jain, known for his bold and concentrated bets, justified his change of heart by citing improved valuations, stronger demand for computing power, and a rebound in graphics processing unit prices. His adaptable approach, though sometimes leading to underperformance during market surges, has been praised by peers for its willingness to change based on new information. This latest pivot follows a similar reversal in 2023 when he became a major investor in Nvidia after previously dumping tech stocks in 2022.
