ASX-listed fund manager GQG’s long-standing contrarian view on the artificial intelligence (AI) boom, which co-founder Rajiv Jain believes is built on shaky foundations, has significantly impacted its investment returns. GQG is a US-based global investment fund manager. Jain’s skepticism contrasts sharply with broader market trends driven by AI enthusiasm.
GQG’s global fund returned 7.7 per cent in the 12 months to May, significantly trailing the MSCI World Index’s 30.3 per cent. This contributed to a US$15.1 billion ($21.8 billion) fall in funds under management (FUM) in the first half of 2026, to US$156 billion, a 9.5 per cent year-on-year decline. The firm acknowledged underperformance, advocating patience and a focus on “compounding client capital over a full market cycle with disciplined attention to downside risk.”
In contrast, L1 Capital’s global long/short strategy delivered a 2.7 per cent gain in June, as the MSCI World Accumulation Index fell 0.7 per cent. Over the past year, L1 Capital returned 50.7 per cent net, outperforming its benchmark’s 21.3 per cent. While co-chief investment officers Mark Landau and Raphael Lamm share wariness about AI hyperscalers, L1’s aggressive short selling, notably in the energy sector during the Iran ceasefire, has boosted recent success.
While both firms value disciplined investing, their portfolio construction diverges. L1 favours “picks-and-shovels” AI-related sectors like copper, nuclear energy, global building products, and digital infrastructure. GQG’s portfolio is anchored by traditional names: Coca-Cola Company, AT&T, Verizon, and energy giants including Iberdrola and TotalEnergies. As GQG’s pre-IPO record before recent underperformance shows, past results are not a guarantee of future success.
