Rajiv Jain: GQG Founder Warns of AI Bubble Risks Amid Fund’s Underperformance
Australian Financial Review
SKIPPED
Details
- Date Published
- 25 Oct 2025
- Priority Score
- 2
- Australian
- Yes
- Created
- 26 Oct 2025, 11:01 am
Description
Is Rajiv Jain a dead man walking, or will he be the last man standing? The star fund manager’s reputation, wealth and business is wagered on an AI bust.
Summary
Rajiv Jain, founder of GQG Partners, cautions against the risks of an AI bubble, as his investment strategies have recently led to underperformance compared to market expectations dominated by big tech stocks. Jain's decision to adopt a defensive investment approach, focusing on sectors like telecoms and consumer staples, reflects skepticism on the sustained profitability of current AI-driven market trends. This shift highlights concerns about potential overvaluations within the AI sector, which could adversely impact investors in the event of a market correction. The article underscores the balancing act faced by financial managers in navigating speculative AI investments versus stable returns, making it relevant for global AI policy discussions on financial stability and risk management. However, the piece lacks a deep dive into catastrophic AI risks or governance strategies specifically aimed at mitigating such threats.
Body
CompaniesFinancial ServicesManaged fundsPrint articleJonathan ShapiroSenior reporterOct 26, 2025 – 11.29amSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginRajiv Jain’s $256 billion global mutual fund empire GQG Partners has been built on market-beating returns that have been the envy of the industry.But Jain is having a rough year. The veteran stock picker had grown increasingly concerned aboutthe hype, valuations and assumptions embedded in the big tech stocksthat dominate his benchmark. And so he shifted the portfolio into more defensive sectors such as telecoms and consumer staples.Loading...Jonathan Shapirowrites about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney.Connect withJonathanonTwitter.EmailJonathanatjonathan.shapiro@afr.comSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreManaged fundsInvestingSharemarketAIAustralian Retirement TrustAustralianSuperFuture FundFetching latest articlesShaken, stirred and a little smoky: three cocktails to define summerMax AllenThis restaurant is stuck in the past. That’s what makes it greatThe newest trend in watches? No handsWhy Australia’s only listed family office prefers working-class staffSally Patten4 steps to land your first board positionWhat this medical sector CEO eats for breakfastCould this be your dream luxury convertible?Tony DavisWhy this founder is considering riding the Silk Road from ChinaGet moving with Loewe’s new collaboration and a Tag Heuer smartwatchHe expected the reno to cost $2m – it cost $20m. Now he’s sellingYolanda RedrupBain consultant’s dog inspires $220m fortune and Young Rich List spotThe Block’s Marty Fox shook up property. It’s made him a fortune