Ep 220: David Jenkins - Dot-Com on Steroids Reality Check for the AI Era

<p>Is the current AI-driven market rally a structural revolution or a speculative mirage? David Clark sits down with <strong>David Jenkins</strong>, Client Portfolio Manager at <strong>GQG Partners</strong>, to dissect the firm&#39;s recent contrarian stance on the technology sector.</p><p>Investors are feeling the squeeze of a &quot;growth-at-any-cost&quot; market. Jenkins explains why GQG, a firm managing over <strong>$250 billion AUD, </strong>is moving toward a defensive, value-oriented posture. We dive deep into their provocative white paper series, &quot;Dot-Com on Steroids,&quot; exploring the &quot;circularity&quot; of AI capital expenditure and the looming risks in the private credit and data center boom.</p><p>If you’ve been questioning the sustainability of triple-digit multiples and wondering where to find quality when &quot;gravity&quot; eventually returns to earnings, this conversation provides a necessary, fundamental-based reality check.</p><p>Key take aways:</p><ul><li><strong>The AI Capex Mirage:</strong> Why the massive spending by &quot;hyperscalers&quot; may be creating a circular revenue trap that isn&#39;t backed by real-world earnings.</li></ul><ul><li><strong>Quality vs. Hype:</strong> Understanding GQG’s &quot;forward-looking quality&quot; philosophy and why they believe traditional tech &quot;quality&quot; is actually deteriorating.</li></ul><ul><li><strong>Hidden Gems in Value:</strong> Why sectors like insurance, healthcare, and utilities are becoming the new frontier for compounding capital.</li></ul><ul><li><strong>Infrastructure Red Flags:</strong> The risk of securing long-term debt against short-lived assets like GPUs that may burn out in 18 months.</li></ul><ul><li><strong>The &quot;South Beach&quot; Story:</strong> A look inside the rapid rise of GQG Partners and how they’ve achieved a 90% alpha strike rate over rolling five-year periods.</li></ul>