In this article, we review the top 10 tech stocks from Rajiv Jain’s GQG Partners by the end of Q3 2021 and review 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 Tech Stocks?
We prepared the factual content of this article in January 2022, when we analyzed Rajeev Jain’s GQG Partners’ Q3 2021 portfolio to discuss the hedge fund’s top 10 technical 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 Tech Stock Picks from Rajeev Jain’s GQG Partners from last year’s third quarter.
To gauge the performance of these tech stocks and hedge funds, we’ve listed their performance over the past 12 months.
However, while reading this article, we should keep in mind the market crash of 2022. You will notice that most of the stocks on this list have lost value over the past 12 months. However, this does not mean that GQG was completely wrong. It is a leading hedge fund that believes in holding stocks for the long term. These technology holdings could generate profits for hedge funds in the coming months and years as analysts expect the market to make a strong comeback in 2023 and beyond.
Before looking at GQG’s technical stock selection, check out our introduction to the hedge fund and its manager, which we wrote back in January.
GQG Partners was founded in 2016 by Rajeev Jain, the hedge fund’s chairman, portfolio manager and chief investment officer. GQG Partners is headquartered in Fort Lauderdale with offices in Seattle, New York City, London and Sydney. Jain’s fund has a 13F portfolio valued at $36.5 billion, according to the third-quarter filing.
Jain’s GQG Partners primarily focuses on the information technology, healthcare, finance, energy, communications and consumer discretionary sectors. The hedge fund invests in separately managed accounts, retail funds, US mutual funds, UCITS funds, Australian funds and CITs. Jain’s investment strategies revolve around global equities, dividend investing, international equities, emerging markets and US securities.
Rajeev Jain’s GQG Partners bought 15 new shares in the third quarter, bought additional holdings in 38 securities, sold 11 shares and reduced holdings in 26 companies. Visa Inc. was among the fund’s top buys in the third quarter. (NYSE:V), Salesforce.com, Inc. (NYSE: CRM) and Exxon Mobil Corporation (NYSE: XOM). While GQG Partners Alibaba Group Holding Limited (NYSE: BABA), Humana Inc. (NYSE: HUM) and Bank of America Corporation (NYSE: BAC).
The most notable stocks in Rajeev Jain’s Q3 portfolio are Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:FB) and Alphabet Inc. (NASDAQ:GOOG).
Rajeev Jain of GQG Partners
10. ZoomInfo Technologies Inc. (NASDAQ:ZI)
GQG Partners Stake Value: $323,777,000
Stock performance over the last 12 months: -60%
Zoominfo Technologies Inc. (Nasdaq: ZI) is a subscription-based SaaS company headquartered in Vancouver, Washington. Zoominfo Technologies Inc. (Nasdaq: ZI) provides an intelligence and information platform that enables sales, marketing and HR professionals to access relevant business data. The company ended the third quarter with more than 25,000 customers and more than 1,250 customers with annual contract values of $100,000 and more.
Credit Suisse analyst Phil Winslow said on Nov. 16 that ZoomInfo Technologies Inc. (NASDAQ:ZI) has an outperform rating and a price target of $100. Analyst ZoomInfo Technologies Inc. (NASDAQ:ZI) as the “clear leader” in go-to-market intelligence solutions and believes a premium valuation compared to current levels is warranted. The company’s superior contact information is a key competitive advantage that will last.
Here’s what Barron Funds has to say about ZoomInfo Technologies Inc. in its investor letter for the third quarter of 2021. (NASDAQ:ZI) has to say about:
“The favorable stock selection in Communications Services comes from ZoomInfo Technologies Inc., a leading go-to-market intelligence platform for sales and marketing teams. We believe that the company’s recent acquisition of Chorus.ai, a conversational intelligence company, has dramatically increased data visibility and the benefits ZoomInfo can offer its customers. In addition, organic sales accelerated for the fifth consecutive quarter and management raised earnings expectations significantly.
9. Salesforce.com, Inc. (NYSE:CRM)
GQG Partners’ stake value: $586,785,000
Stock performance over the last 12 months: -47%
Rajeev Jain bought a stake in Salesforce.com, inc. (NYSE: CRM) bought 2.16 million shares of the company worth $586.7 million in the third quarter of 2021, representing 1.60% of its fund’s Q3 portfolio. Salesforce.com, Inc. (NYSE: CRM) is a cloud-based software company that provides customer relationship management software and applications to support marketing automation and data analytics.
UBS analyst Carl Keirstedt said that Salesforce.com, Inc. downgraded its rating. (NYSE:CRM) down from $315 to neutral with a price target of $265 from January 4 purchase, citing cost pressures likely to affect the company’s growth in 2022.
Here’s what Vulkan Value Partners had to say about Salesforce.com, inc. (NYSE:CRM) in its Q3 2021 investor letter:
“Salesforce.com Inc., content provider for the quarter, is a leading provider of customer relationship management (CRM) software and technology. Salesforce has high retention rates, pricing power, a large and growing addressable market, high free cash flow, and a competitive environment. The company is performing well and we believe the global pandemic has only improved its outlook and future returns.”
8. Accenture plc (NYSE:ACN)
GQG Partners Stake Value: $631,768,000
Stock performance over the last 12 months: -18%
Accenture plc (NYSE:ACN), an Irish IT and consulting services company, is one of the top technology stocks in GQG Partners’ Q3 portfolio. The hedge fund increased its stake in Accenture plc (NYSE:ACN) by a given 7%. third quarter. Jain’s fund held 1.97 million shares of Accenture plc (NYSE:ACN) worth $631.7 million, representing 1.72% of total investments in the third quarter.
On Dec. 20, Barclays analyst Ramsey El-Assal raised the price target on Accenture PLC (NYSE:ACN) from $384 to $455 and maintained an overweight rating for the stock following its fourth-quarter earnings report.
In the third quarter of 2021, 56 hedge funds were bullish on Accenture plc (NYSE:ACN), compared to 52 funds in the previous quarter. Nicolai Tangen’s Acko Capital is the company’s largest shareholder with a holding of $718.7 million.
Here’s what Poland Global Growth had to say about Accenture plc (NYSE:ACN) in its Q3 2021 investor letter:
“Accenture continues to perform well as the business has grown through the pandemic. Accenture benefits when companies around the world look for a trusted partner to enable their digital transformation. The pioneers are stepping up investment in the new world, while the laggards are investing to bridge the gap. These are two great examples of trends accelerated by the pandemic that were already set in motion, making leaders more resilient.
7.Adobe Inc. (NASDAQ:ADBE)
GQG Partners Stake Value: $709,391,000
Stock performance over the past 12 months: -49%
Adobe Inc. (NASDAQ: ADBE) is a California-based multinational computer software company best known for its applications such as Adobe Photoshop, Adobe Illustrator, Adobe Acrobat Reader, Adobe Creative Suite, Adobe Creative Cloud, and Dreamweaver. Rajeev Jain September 2021 Adobe Inc. (NASDAQ: ADBE) has a position of $709.3 million, which is 1.94% of their total investments in the third quarter.
UBS analyst Carl Keirstedt said Adobe Inc. (NASDAQ: ADBE) down Buy to Neutral with a price target of $575 from $635 on concerns that tech spending was pushed through 2020 and 2021 and that Adobe Inc. NASDAQ growth: ADBE will put pressure on rate in 2022.
This is Ritchie Capital Group’s Investor Letter 2021 Q2 about Adobe Inc. (NASDAQ:ADBE) who has to say about:
Adobe Systems (ADBE – 24.8% increase) – Over the past 15 years, Adobe has transformed itself into a software giant, more than tripling its revenue since 2010. The company is known for its eponymous PDF reader and photo editing. famous for photoshop. . However, ADBE sells a full suite of software products through a recurring subscription model. The company moved from selling software in a box to recurring subscriptions in 2013, and revenue has grown steadily ever since. The company achieved sales of $13 billion in 2020 with a gross margin of 88%.
6. Amazon.com, Inc. (NASDAQ:AMZN)
GQG Partners Stake Value: $882,550,000
Stock performance over the last 12 months: -47%
Amazon.com, Inc. (NASDAQ: AMZN) Jeff Bezos announced on Jan. 5 that his voice assistant, Alexa, is on its way to space. NASA’s Next Generation Rocket Amazon.com, Inc. (NASDAQ: AMZN) Alexa and Cisco Systems, Inc. (NASDAQ: CSCO)’s Webex communications platform. Alexa provides information and companionship to astronauts, and the Webex platform enables video conferencing from space to Earth.
Jain’s GQG Partners owns Amazon.com, Inc. (NASDAQ: AMZN) has 268,698 shares worth $882.5 million, representing 2.41% of the fund’s Q3 investments.
Monness Crespi analyst Brian White reported on Dec. 27 that Amazon.com, Inc.
This is what Amazon.com, Inc. (NASDAQ: AMZN) of the Davis Opportunity Fund had to say in its Q3 2021 investor letter:
“E-commerce, online search and advertising, social media and software are other components of the portfolio that are proven, attractive companies. The online portion of the fund is currently dominated by market leaders such as Amazon.com. are attracted to these names based on the size and rapid expansion of opportunities, the ability to generate and grow new revenue streams through continuous innovation, substantial operational leverage as they scale, and enable focused, highly competitive continued leadership teams. Our experience is that these types of companies, if bought at reasonable prices, can make a meaningful contribution to long-term results.
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Disclosure: None. Were Rajeev Jain’s GQG Partners Right About These 10 Tech Stocks? Originally published on Insider Monkey.