GQG Partners U.S. Equity
GQG’s US Equity strategy is an unconstrained, concentrated portfolio of high-quality US companies with durable earnings. Their focus is on forward-looking quality, rather than companies that have done well historically. This view of quality allows them to strip away labels like value and growth in favour of long-term compounding.
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Rajiv is the Chairman and Chief Investment Officer of GQG Partners, where he leads all investment strategies. He joined GQG Partners in June 2016 and brings over 25 years of investment experience. Previously, Rajiv was Co-Chief Executive Officer and Chief Investment Officer at Vontobel Asset Management, where he managed international and emerging markets equities and helped grow assets from under $400 million to nearly $50 billion. He started at Vontobel in 1994 and earlier worked as an International Equity Analyst at Swiss Bank Corporation. Rajiv holds an MBA in Finance and International Business from the University of Miami, a master’s degree from the University of Ajmer, and an undergraduate degree in accounting with honors.
Brian is a portfolio manager for all GQG Partners strategies and was the deputy portfolio manager for the International Equity strategy from 2019 to June 2022. He has been a senior investment analyst at GQG Partners since joining in 2016. Before GQG Partners, Brian worked at Jennison Associates for six years, focusing on sectors like real estate, aerospace, and automotive as part of the Small/Midcap Equity Research team. He started his career at Brown Brothers Harriman in 2008. Brian holds an MBA from Rutgers University and a BA in Economics from the University of Connecticut.
Sudarshan is a portfolio manager for all GQG Partners strategies and was deputy portfolio manager for the Emerging Markets Equity strategy until June 2022. He has been with GQG Partners since 2016 as a senior investment analyst. Before joining the firm, Sudarshan worked for five years as a generalist analyst in Asian equities at Matthews International Capital and as a sell-side research associate at Sanford C. Bernstein. His early career included operational roles in IT services, including five years at Infosys, where he assisted the Chairman and helped launch the company’s life sciences business. Sudarshan earned an MBA from Wharton (Palmer Scholar), a Post Graduate Diploma in Management from IIM Calcutta, and a Bachelor of Engineering from NIT Surathkal. He is also a CFA charterholder.
Siddharth Jain, based in New York, is an Investment Professional at GQG Partners. He previously worked at Warburg Pincus LLC and PJT Partners. Siddharth holds a Bachelor's degree in Economics from the University of Chicago and has strong skills in research, financial analysis, financial modeling, and Microsoft Office applications.
Rajiv is the Chairman and Chief Investment Officer of GQG Partners, where he leads all investment strategies. He joined GQG Partners in June 2016 and brings over 25 years of investment experience. Previously, Rajiv was Co-Chief Executive Officer and Chief Investment Officer at Vontobel Asset Management, where he managed international and emerging markets equities and helped grow assets from under $400 million to nearly $50 billion. He started at Vontobel in 1994 and earlier worked as an International Equity Analyst at Swiss Bank Corporation. Rajiv holds an MBA in Finance and International Business from the University of Miami, a master’s degree from the University of Ajmer, and an undergraduate degree in accounting with honors.
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Company Description
GQG Partners is one of the newest and fastest growing asset management businesses, having launched in 2016. The company was founded by Rajiv Jain who has over 25 years’ experience managing developed and emerging market equity strategies. It is a private company and is majority owned by Rajiv. The firm has $120bn* assets under management.*as at 31 Dec 2023
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Investment process
GQG's investment philosophy centres on the belief that earnings are the primary driver of stock prices. The firm recognises that there are limited opportunities for gaining an information advantage over the market and that it is dominated by short-term projections. Due to this focus on the short term, investors may overlook a company's long-term prospects, leading to mispriced stocks. GQG aims to capitalise on the mispricing of long-tailed assets, particularly companies with significant growth potential over the next five years.
With a universe of some 50,000 stocks, the investment process starts with a quantitative scoring and ranking system to identify potential investments from a universe of listed and actively traded global equities. The firm uses a quantitative scoring and ranking system to identify potential investments from a universe of listed and actively traded global equities. While this system cannot fully capture forward-looking quality, it employs common metrics such as stable financials, profitability, efficiency, and economic moats to evaluate companies. The research yields several hundred companies ranked on an aggregate quality score of 1-10.
The investment team will also use their cumulative historical knowledge as one of their primary sources of investment ideas. They consider this process as an efficient hunting ground for investment opportunities due to the team's existing knowledge of the market dynamics, competition and headroom for growth of the end market.
The next stage sees a fundamental analysis of a company. The research focuses on understanding the business's ecosystem, evaluating key drivers of success, barriers to entry, sustainability, management effectiveness, regulatory environment, and end-consumer behaviour. Additionally, their fundamental research leads them to other potential stocks as they are exploring related businesses, such as competitors, suppliers, and customers. This process produces a comprehensive estimate of a company's future earnings, evaluating business earnings growth over a multi-year horizon.
The final portfolio typically holds 15-40 stocks. Portfolios are constructed with an emphasis on diversifying revenue sources and end-consumer behaviours, potentially leading to high sector or country concentrations.
Risk
GQG evaluate risk at the company level with a focus on both absolute and relative risk. While they may occasionally use such tools or proprietary analyses to gauge risk, they prefer assessing events in light of evolving market dynamics. Their risk control strategy involves diversifying by end consumers of the companies it owns. Concerning downside risk, they associate longer-term risk with the quality of a business. Low-margin and highly leveraged businesses are considered inherently risky. The team focuses on avoiding businesses with a high degree of long-term unpredictability and is cautious in modelling the future earnings and multiples of less predictable businesses, such as those in the technology sector.
The fund is highly concentrated and unconstrained by a benchmark. Because of the team’s focus on diversification of revenue sources and end consumer behaviours, GQG portfolios may feature high sector and/or country concentrations.
ESG
ESG - Limited
GQG will not screen out companies based solely on their ESG scores or rankings. They recognise that sustainable businesses drive sustainable earnings and that ESG issues can materially impact on companies’ valuations. Their analyses integrates E, S, G, and C (culture) criteria within each component of their research mosaic to gain insight on where a business is going.
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