Rajiv Jain’s GQG Partners has aggressively increased its technology holdings after previously avoiding AI stocks. The move follows months of underperformance and $36 billion in investor redemptions. The portfolio shift involved reducing stakes in emerging markets like India and Brazil to fund the move into tech, as the firm looks to recover lost ground against broader market benchmarks.
After a long period of maintaining a defensive stance, Rajiv Jain, the lead portfolio manager at GQG Partners, has significantly changed his investment strategy regarding artificial intelligence. The firm has now moved to increase its exposure to technology stocks, marking a major departure from its previous outlook that had characterized the AI-led market growth as an unsustainable bubble.
Recent data reveals a sharp shift in the firm’s portfolio allocation. In August, the GQG emerging markets fund tripled its technology exposure to approximately 35%, successfully closing the gap that had left the fund trailing the broader market for several months. Similarly, the flagship international equity fund increased its technology holdings to 28%, a notable jump from the 5.4% position held just a month earlier in July. To finance these new investments in technology, the firm reduced its exposure to other regions, including India and Brazil, which caused some trading volatility in those markets.
The decision to pivot follows a challenging 18-month period for the asset manager. Since mid-2025, GQG Partners has experienced $36 billion in investor redemptions as shareholders grew increasingly concerned about the firm’s underperformance. While the firm historically utilized a defensive approach to protect capital during downturns, staying on the sidelines during the recent AI-driven stock market rally proved costly. The firm’s international fund returned 12% over the past year, significantly lower than the 21% return managed by its benchmark.
During a recent discussion with investors, Jain acknowledged that his previous assessment of the sector was incorrect. He pointed to stronger-than-expected demand for computing power and higher profit margins among large cloud and data center companies as the main drivers for his change in heart. Despite this pivot, some analysts maintain a cautious view. JPMorgan Chase & Co. analysts have noted that such a rapid shift in sectoral positioning could potentially risk alienating existing clients who favored the firm’s previous defensive style, and they warned that this change might trigger further short-term outflows.
The firm describes this change as an example of its investment flexibility, allowing it to adapt to evolving market conditions. However, the move has generated debate regarding whether this late-stage entry into technology stocks can successfully stabilize the firm’s assets under management. Investors may watch how the firm’s performance evolves relative to its benchmarks in the coming quarters and whether it can retain its current client base amidst these portfolio adjustments.