GQG Partners (GQG; short for Global Quality Growth) is an investment management company headquartered in
Fort Lauderdale, Florida
Fort Lauderdale () is a coastal city located in the U.S. state of Florida, north of Miami along the Atlantic Ocean. It is the county seat of and largest city in Broward County with a population of 182,760 at the 2020 census, making it the tenth ...
. The company focuses on
active management
Active management (also called ''active investing'') is an approach to investing. In an actively managed portfolio of investments, the investor selects the investments that make up the portfolio. Active management is often compared to passive man ...
of
equity
Equity may refer to:
Finance, accounting and ownership
* Equity (finance), ownership of assets that have liabilities attached to them
** Stock, equity based on original contributions of cash or other value to a business
** Home equity, the dif ...
portfolios. It is currently traded on the
Australian Securities Exchange
Australian Securities Exchange Ltd or ASX, is an Australian public company that operates Australia's primary securities exchange, the Australian Securities Exchange (sometimes referred to outside of Australia as, or confused within Australia as ...
and is a constituent member of the
S&P/ASX 200 index.
Outside the United States, the company has offices in London and Sydney.
Background
GQG was co-founded by Rajiv Jain and Tim Carver in March 2016. Jain who was previously co-CEO and the
CIO of
Vontobel
Vontobel Holding AG is a Swiss private banking and investment management group headquartered in Zurich. Established in 1924, as of August 2021, Vontobel has over 2,000 employees across 26 worldwide locations. Vontobel group's core businesses ar ...
Asset Management left his position to found GQG and hired Tim Carver as CEO due to his experience in guiding young investment firms. This allowed Jain to focus on the investment side while Carver could focus on the business side. No members of Vontobel's investment team joined Jain when he left and a new investment team had to be formed at GQG.
In December 2016, GQG partnered with
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
to launch the Goldman Sachs GQG Partners International Opportunities Fund (international fund) that would invest in equities globally. It is GQG's largest fund at US$26 billion as of March 2023 and has produced an annual return of 10.8% since inception. Two of its largest holdings are
British American Tobacco
British American Tobacco plc (BAT) is a British multinational company that manufactures and sells cigarettes, tobacco and other nicotine products. The company, established in 1902, is headquartered in London, England. As of 2019, it is the large ...
and
Philip Morris International
Philip Morris International Inc. (PMI) is an American Multinational corporation, multinational tobacco company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro. Philip Morris I ...
.
At the end of 2017, GQG had US$10 in
assets under management. Its rapid growth in a short period of time was considered unusual for a money manager. At the time 40% of GQG's clients were former Vontobel clients who moved from Vontobel to GQG.
On 28 October 2021, GQG completed its
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
(IPO) on the
Australian Securities Exchange
Australian Securities Exchange Ltd or ASX, is an Australian public company that operates Australia's primary securities exchange, the Australian Securities Exchange (sometimes referred to outside of Australia as, or confused within Australia as ...
raising US$893 million.It was the largest IPO in Australia during 2021. However its share price has traded below its offer price since.
As of August 2023, Jain owns just under 70% of GQG while Carver owns 5.6%
Investments
GQG invests in
growth stock
In finance, a growth stock is a stock of a company that generates substantial and sustainable positive cash flow and whose revenues and earnings are expected to increase at a faster rate than the average company within the same industry. A growth c ...
s that belong to more traditional industries such as oil, tobacco and banking. Some of its market bets can be considered to be following a
contrarian investing
Contrarian Investing is an investment strategy that is characterized by purchasing and selling in contrast to the prevailing sentiment of the time.
A contrarian believes that certain crowd behavior among investors can lead to exploitable mispri ...
approach.
During the
2022 stock market decline
The 2022–2023 bear market is an ongoing economic event involving a decline in stock markets globally.
In the years leading up to the decline, the COVID-19 pandemic resulted in a global economic recession. Although direct effects due to th ...
, GQG had inflows of US$8 billion and three of its four flagship funds beat the benchmark indexes. The forth flagship fund focused on
emerging markets which had a 21% loss that year due to its investments in Russia being affected by the
Russian invasion of Ukraine. Jain apologized on a
conference call to investors due to the losses incurred.
In March 2023, GQG announced it would invest US$1.9 billion into four of the
Adani Group's publicly listed companies. This came at a time where share prices of Adani Group listed companies declined steeply due to the report released by
Hindenburg Research in January that year. At that time, GQG's emerging market fund had 34% of its investments in Indian companies.
In June, GQG bought a stakes worth US$1 billion in
Adani Enterprises and
Adani Green Energy
Adani Green Energy Limited (AGEL) is an Indian renewable energy company headquartered in Ahmedabad, Gujarat. It is owned by Indian conglomerate Adani Group. The company operates Kamuthi Solar Power Project, one of the largest solar photovoltaic ...
.
In August, GQG made further investments by buying a 8.1% stake in
Adani Power
Adani Power is an Indian power and energy company. A subsidiary of Indian conglomerate Adani Group with head office at Khodiyar in Ahmedabad, it is a private thermal power producer, with a capacity of 12,450 MW that operates a mega solar plant o ...
for US$1.1 billion via
block trade
A block trade is a high-volume transaction in a security that is privately negotiated and executed outside of the open market for that security. Major broker-dealers often provide "block trading" services—sometimes known as "upstairs trading de ...
s.
In early 2023. GQG funds lagged behind the benchmark as they had sold off their investments in internet companies of China last year and were not able to fully benefit from the upward trend when China opened up at the start of the year. The international fund at the time only gained 3.4% compared to the benchmark of 7.8%.
In August that year, GQG started adding more positions of Chinese gaming and food delivery companies to its emerging market fund.
References
External links
*
{{Authority control
American companies established in 2016
Companies listed on the Australian Securities Exchange
Financial services companies based in Florida
Financial services companies established in 2016
Investment companies of the United States