Were Rajeev Jain’s GQG Partners Right About These 10 Stocks?


In this article, we discuss the top 10 stock picks of Rajeev Jain’s GQG Partners by the end of Q3 2021 and assess their performance over the past 12 months. If you’d like to skip ahead to our detailed analysis of Jain’s history, investment philosophy and hedge fund performance, head straight to Were Rajeev Jain’s GQG Partners Right About These 5 Stocks?

We prepared the actual content of this article in November 2021 when we analyzed the Q3 portfolio of Rajeev Jain’s GQG Partners to discuss the top 10 hedge fund picks at the time. We’re publishing this article today because it’s always interesting for readers to analyze how well so-called “smart money” fares when it comes to picking stocks. When we look back at the selection/sale of hedge fund stocks, we can better analyze their performance and see if they were right or wrong. In this article you will find the top 10 stock picks from Rajeev Jain’s GQG Partners from last year’s third quarter. To assess the performance of these stocks and hedge funds, we’ve listed their performance over the past 12 months. At the time of writing, we had the analyst ratings for these stocks listed by reputable Wall Street analysts. It will be interesting for our readers to see how right or wrong these analysts’ price targets and calls were.

Rajeev Jain, who serves as President and Chief Investment Officer, is the founder of GQG Partners, a Florida-based investment management firm, as well as the lead portfolio manager for all GQG Partners strategies. He started investing activities at GQG Partners in 2016 with over 26 years of investing experience. Prior to that, Rajiv Jain was Co-Portfolio Manager at Vontobel Asset Management in 1994, later becoming Co-Chief Executive Officer, Chief Investment Officer and Head of Equity, International Equity Strategy and Emerging Sole Portfolios. Equity Strategy and Lead Portfolio Manager for Global Equity Strategy at the firm. Prior to that, he was an international equities analyst at Swiss Bank Corporation.

Some of the top positions in GQG Partners’ investment portfolio at the end of Q3 2021 include Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ: FB), Microsoft Corporation (NASDAQ: MSFT) and . Visa Inc. (NYSE: V), along with others, are discussed in more detail below.

Top 10 stock picks from Rajeev Jain’s GQG partners

10.Philip Morris International, Inc. (NYSE: PM)

GQG Partners’ stake value: $1.35 billion

Stock performance over the past 12 months as of Nov 22: +8%

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Phillip Morris International, Inc. (NYSE: PM) is a multinational cigarette and tobacco products manufacturing company based in New York. Marlboro is one of the most recognized and well-known brands, with products sold in more than 180 countries.

According to GQG Partners’ Q3 2021 13F filing, the fund consists of Philip Morris International, Inc. (NYSE:PM) which owns more than 14.2 million stocks valued at more than $1.39 billion, representing 3.69% of the fund’s portfolio value.

According to Insider Monkey data, Terry Smith of Philip Morris International, Inc. (NYSE:PM) of Fundsmith LLP was one of the largest stakeholders as of the end of the third quarter. At the end of the third quarter, a total of 48 funds were bullish on the company, up from 46 in the previous quarter.

9. Charter Communications, Inc. (NASDAQ:CHR)

GQG Partners’ stake value: $1.37 billion

Stock performance over the past 12 months to Nov 22: -41%

Charter Communications Inc. (NASDAQ: CHTR) is a Connecticut-based telecommunications and mass media company that provides broadband communications and entertainment services.

Rajeev Jain’s hedge fund held Charter Communications, Inc. (NASDAQ: CHTR) owns more than 1.88 million shares worth $1.37 billion and represents 3.76% of the portfolio’s value.

On November 22, Loop Capital analyst Alan Gold assessed Charter Communications, Inc. The analyst noted that Charter Communications, Inc. (NASDAQ: CHTR) reported a mixed quarter with solid financials but weak customers.

In its Q1 2021 investor letter, asset manager ClearBridge Investments highlighted certain stocks and Charter Communications, Inc. (NASDAQ:CHTR) was one of them. Here’s what the fund said:

“The portfolio’s preference for quality and valuation discipline have generated attractive returns over time with generally strong relative performances in a more challenging environment, as was the case in the first three quarters of 2020. Strategy during periods of rapid economic acceleration, which favors stocks that are over-commodity tied or of low quality. This was the case during the vaccine and stimulus-driven rally late last year and during the most recent quarter. Sectors underperforming in the quarter included communications services, where Charter lagged after posting strong returns earlier in the recovery.

8. United Health Group Incorporated (NYSE: UNH)

GQG Partners’ stake value: $1.4 billion

Stock performance over the past 12 months as of Nov 22: +17%

UnitedHealth Group Incorporated (NYSE: UNH) is a multinational healthcare and insurance company based in Minnetonka, Minnesota. It is one of the world’s largest companies by revenue, providing healthcare products, healthcare coverage, software and data consulting services.

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Rajeev Jain’s GQG Partners currently owns more than 3.6 million shares of UnitedHealth Group Incorporated (NYSE: UNH). These stocks are valued at $1.4 billion and account for 3.87% of the investment firm’s portfolio.

On Nov. 16, Deutsche Bank analyst George Hill raised his price target on UnitedHealth Group Incorporated (NYSE:UNH) from $421 to $477, and maintained a buy rating on the company’s stock following the release of its quarterly filing.

Among the hedge funds tracked by Insider Monkey, Boykin Curry’s Eagle Capital Management is one of the major shareholders of UnitedHealth Group Incorporated (NYSE:UNH), holding 3 million shares worth approximately $1.2 billion.

Wedgwood Partners mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its investor letter for Q3 2021. Here’s what the company has to say:

,unitedhealth Investor concerns about Medicare premiums and post-Covid medical cost trends negatively impacted the group’s performance. Medicare enrollment at UnitedHealthcare should continue to grow at double-digit rates. Meanwhile, the company’s Optum segment should be able to bend the cost curve, if indeed post-Covid volumes recover from pre-Covid levels. In any case, we don’t think the overall long-term trend of medical care in the US has changed significantly and would like to add our new position on any short-term issues.

7. Exxon Mobil Corporation (NYSE: XOM)

GQG Partners’ stake value: $1.56 billion

Stock performance over the past 12 months as of Nov 22: +78%

Exxon Mobil Corporation (NYSE: XOM), based in Irving, Texas, is one of the world’s largest multinational oil and gas companies that produces and transports crude oil, natural gas and petroleum products. While the US energy sector has posted strong year-over-year gains, Exxon Mobil Corporation (NYSE:XOM) seems to have lagged behind the industry’s transition of late.

Rajeev Jain’s GQG Partners owns more than 26.5 million shares of $1.56 billion in Exxon Mobil Corporation (NYSE:XOM), representing 4.28% of the fund’s 13F portfolio. Of the 867 elite funds tracked by Insider Monkey, 64 reported stocks in the company at the end of the third quarter. Jean-Marie Avilard of First Eagle Investment Management is one of the company’s largest shareholders.

On Oct. 21, Morgan Stanley analyst Devin McDermott maintained an Overweight rating on Exxon Mobil Corporation (NYSE:XOM) with an $84 price target for the company’s stock.

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In its investor letter for the second quarter of 2021, First Eagle Investment Management said that Exxon Mobil Corporation (NYSE: XOM) was one of the top contributors to the fund for the quarter. This is what he said:

“Major contributors to the Eagle Global Fund earlier this quarter were Exxon Mobil Corporation. The continued recovery in oil prices as the economy picked up again led to strong performance in the energy complex, including equities exxon mobile, Exxon Mobil recently lost a proxy battle with an activist investor who held three of the company’s 12 board seats. While the press focused on investor concerns about Exxon Mobil’s long-term energy transition strategy, there were also other factors fundamental to shareholder returns, such as capital discipline and balance sheet management.

6.Microsoft Corporation (NASDAQ:MSFT)

GQG Partners’ stake value: $1.68 billion

Stock performance over the past 12 months as of Nov 22: -26%

Microsoft Corporation (NASDAQ: MSFT), one of the Big Five American technology companies, is a multinational corporation based in Washington. Known for its computer software and operating systems, it recently became the most valuable publicly traded company in the world, with a market cap of $2.53 trillion at market close.

GQG Partners owned 5.97 million shares of $1.68 billion in Microsoft Corporation (NASDAQ:MSFT) in the third quarter, representing 4.6% of the company’s 13F portfolio.

Here’s what Poland Global Growth had to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter:

“After modest portfolio activity in the second quarter of 2021, activity picked up again in the third quarter. We will broadly divide the different transactions into two objectives: 1) risk management and 2) valuation management. In both cases, our goal was to maintain the growth profile of the portfolio. Overall, we believe we were able to drive expected earnings growth while reducing risk and overall portfolio valuation… We also trimmed Microsoft, which had grown to about 10% of the portfolio. With a weight of 8%, it still represents one of our largest holdings.

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