Australia’s Growth Funds Hammered as AI Fears Trigger Sell-off in Software Stocks
Australian Financial Review
ENRICHED
Details
- Date Published
- 12 Feb 2026
- Priority Score
- 2
- Australian
- Yes
- Created
- 13 Feb 2026, 11:00 pm
Description
Top investors including Hyperion, GCQ and Aoris are nursing heavy losses as the violent sell-off in software stocks erode years of market-leading performance.
Summary
The article details how major Australian growth funds, including Hyperion, GCQ, and Aoris, are experiencing significant losses due to a drastic sell-off in software stocks, driven by concerns over AI's potential to replicate and replace existing software services at lower costs. This issue underscores the broader market anxiety surrounding AI's disruptive capacity, especially regarding high-valued technology stocks. The release of new AI tools by companies like Anthropic has intensified these fears, leading to volatility in the technology investment sector. While the focus is primarily on financial impacts, the article highlights the need for careful risk assessment within AI investment landscape.
Body
MarketsEquity MarketsManaged fundsPrint articleAlex GluyasMarkets reporterUpdated Feb 12, 2026 – 5.06pm, first published at 3.52pmAustralia’s top technology investors are fortifying their portfolios as the artificial intelligence scare trade sweeps across the sector, eroding years of market-leading returns.The market has grown increasingly concerned that AI could replicate the services offered by highly valued software companies at a fraction of the cost. The fears hit fever pitch last week after Anthropic released AI tools aimed at automating work tasks in various industries.Loading...Alex Gluyas is a markets reporter based in the Melbourne newsroom. Connect with Alex on Twitter. Email Alex at alex.gluyas@afr.comSaveLog in or Subscribe to 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 fundsSharemarketSoftwareAIInvestingActive investingFetching latest articles