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Bobby Jain Says AI, Politics Are Fueling His Push Into Energy

Jun 20, 2024 - financialpost.com
Bobby Jain, founder of Jain Global LLC, has revealed that climate change, geopolitics, and the rise of artificial intelligence (AI) are the key factors shaping his firm's investment strategy in power, gas, and commodities. Jain, who was speaking at the UBS Singapore Family Wealth Forum, highlighted the potential of commodities, citing changes in European natural gas supply chains and weather patterns as reasons for his optimism. His hedge fund is set to start trading in July, with 15-20% of the approximately $5 billion it aims to raise allocated to investments in commodities.

Jain also sees significant opportunities in the equity long-short space, betting on the businesses that will benefit or suffer from the rise of AI. Despite the competition from private credit firms, he described the fundraising environment as "reasonable," with many investors from the private wealth space underweight in alternatives. The rise of advanced technologies has also helped the firm minimize back-office hiring, with improved access to data and better visualization tools leading to significant productivity gains.

Key takeaways:

  • Bobby Jain, founder of Jain Global LLC, is focusing his investment strategy on power, gas and commodities, driven by climate change, geopolitics and the popularity of artificial intelligence.
  • Jain's hedge fund is set to start trading in July, with 15% to 20% of the roughly $5 billion it's seeking to raise allocated to investments in commodities.
  • Jain sees opportunities in the US, Europe, Australia and New Zealand for gas and power trading and also sees potential in the equity long-short space, betting on businesses that will benefit or suffer from the rise of AI.
  • Despite being a Democrat, Jain believes there are fewer differences between Donald Trump and Joe Biden than many people think, and suggests that some New Yorkers who voted for Hillary Clinton in 2016 are now seeing Trump's policies as more reasonable.
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