GQG Partners

Last updated

GQG Partners Inc.
Company type Public
ASX:  GQG
S&P/ASX 200 component
S&P/ASX 300 component
Industry Investment management
FoundedMarch 2016;8 years ago (2016-03)
Founders
  • Rajiv Jain
  • Tim Carver
Headquarters
Fort Lauderdale, Florida
,
U.S.
Key people
  • Rajiv Jain (Chairman & CIO)
  • Tim Carver (CEO)
RevenueIncrease2.svgUS$436.83 million (FY 2022)
Increase2.svgUS$332.14 million (FY 2022)
Decrease2.svgUS$237.94 million (FY 2022)
AUM US$105 billion (June 2023)
Total assets Decrease2.svgUS$341.98 million (FY 2022)
Total equity Increase2.svgUS$312.10 million (FY 2022)
Number of employees
Increase2.svg 172 (June 2023)
Website www.gqg.com
Footnotes /references
[1]

GQG Partners (GQG; short for Global Quality Growth) is an investment management company headquartered in Fort Lauderdale, Florida. The company focuses on active management of equity portfolios. It is currently traded on the Australian Securities Exchange and is a constituent member of the S&P/ASX 200 index.

Contents

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 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. [2] [3] [4] [5]

In December 2016, GQG partnered with Goldman Sachs to launch the Goldman Sachs GQG Partners International Opportunities Fund (international fund) that would invest in equities globally. [6] 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 and Philip Morris International. [3] [7]

At the end of 2017, GQG had US$10 billion 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. [5]

On 28 October 2021, GQG completed its initial public offering (IPO) on the Australian Securities Exchange raising US$893 million.It was the largest IPO in Australia during 2021. However its share price has traded below its offer price since. [2] [3] [7] [8]

As of August 2023, Jain owns just under 70% of GQG while Carver owns 5.6% [7]

In September 2024, GQG Partners was charged by the U.S. Securities and Exchange Commission for hindering whistleblower protections, through its restrictive non-disclosure agreements that disallowed employees from reporting potential violations. [9]

Investments

GQG invests in growth stocks 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 approach. [2] [3] [4] [5]

During the 2022 stock market decline, GQG had inflows of US$8 billion and three of its four flagship funds beat the benchmark indexes. The fourth 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. [3]

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%. [3] In August that year, GQG started adding more positions of Chinese gaming and food delivery companies to its emerging market fund. [10]

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. [4] In June, GQG bought a stakes worth US$1 billion in Adani Enterprises and Adani Green Energy. [11] In August, GQG made further investments by buying a 8.1% stake in Adani Power for US$1.1 billion via block trades. [11] On November 20, 2024, Gautam Adani and several business executives of the Adani Group were indicted by the U.S. Attorney's Office in Brooklyn, New York. As per United States of America v. Gautam Adani et al. they were charged for their alleged involvement in a scheme to pay hundreds of millions of dollars in bribes to Indian government officials and to hide the bribery from U.S. investors. As a result, GQG Partners’ shares fell as much as 25%. [12]

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References

  1. ↑ "Annual Report 2022" (PDF). GQG Partners.
  2. 1 2 3 "GQG Partners - Asset Management Company | Morningstar". 24 October 2023. Archived from the original on 24 October 2023. Retrieved 24 October 2023.
  3. 1 2 3 4 5 6 Xie, Ye (3 March 2023). "GQG Co-founder Rajiv Jain is quietly building a $92 billion stock empire in Florida". The Economic Times. ISSN   0013-0389 . Retrieved 24 October 2023.
  4. 1 2 3 Tognini, Giacomo. "Meet Rajiv Jain, The Asset Management Billionaire Backing The Embattled Adani Group". Forbes. Retrieved 24 October 2023.
  5. 1 2 3 "GQG Partners marks growth spurt despite downturn in active management". Pensions & Investments. 2 January 2018.
  6. ↑ "Goldman Sachs Asset Management and GQG Partners Launch Flagship International Equity Strategy". www.businesswire.com. 16 December 2016. Retrieved 24 October 2023.
  7. 1 2 3 "GQG reassures analysts over Goldman Sachs tie-up". Australian Financial Review. 17 August 2023. Retrieved 24 October 2023.
  8. ↑ "GQG Partners IPO at 16.5x to 18x profit, cornerstones tip in $800m". Australian Financial Review. 5 October 2021. Retrieved 24 October 2023.
  9. ↑ Nair, Ravi (27 September 2024). "Adani Group's post-Hindenburg saviour GQG Partners charged by US SEC". The News Minute. Retrieved 30 September 2024.
  10. ↑ "GQG Fund That Exited China Internet Stocks Is Making a Comeback". Bloomberg.com. 23 August 2023. Retrieved 24 October 2023.
  11. 1 2 "GQG Partners investment in Adani Group stocks hits $4 billion". cnbctv18.com. 16 August 2023. Retrieved 24 October 2023.
  12. ↑ Lim, Hui Jie (21 November 2024). "Adani investor GQG Partners' shares see worst day after Gautam Adani's indictment". CNBC. Retrieved 24 November 2024.
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