GQG - GQG Partners Inc

[InsvestoBoy]

I'm surprised that this stock doesn't get more of a mention. (I do hold).

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Definitely gets a mention on the AFR every now and then, Robert Frost mentioned it as a buy Nov 9 2023, pretty much perfectly bottom ticking the current 60% run.

This small caps fundie says GQG Partners is a buy

OC Funds investment chief Robert Frost says the market is too conservative on the US money manager and has been buying up IDP Education and Domain Holdings after heavy sell-offs.

www.afr.com

I had it on my watchlist since then but never bought, even though they do seem to often be good businesses, I always struggle getting long pure fund managers, prefer those that give you exposure to what they're managing like MQG/WES/SVW/SOL

 

[Dona Ferentes]

Has seen $US2.9 billion ($4.4 billion) of net inflows so far this year, thanks to “solid business momentum in a variety of geographies and across channels”.

Funds under management at the end of January hit $US127 billion, which is a record high

 

[Dona Ferentes]

and, finally, above the 2021 IPO price .

.
if only they hadn't tried to be so smart, and come to market at 1.50. The narrative at the time was that Australia allowed/ carried a 25 per cent premium , and a listing elsewhere FTSE, NY, would have been at a lower price.

 

[Dona Ferentes]

GQG Partners has had $US10 billion ($15 billion) of fund inflows which helped lift total assets under management to a record $US120 billion. Two factors drive that increase.

The first is impressive performance. GQG’s flagship global equity fund delivered a 34.1 per cent return in the year ended January net of fees, 11.7 per cent above its benchmark, and over the past three years has delivered 18.8 per cent, or 7.3 per cent ahead of its benchmark.

On a call with analysts, executive chairman and chief investment officer Rajiv Jain explained how the firm has cleverly ridden the rise, fall and renewed surge of the global tech sector.

In 2021 and 2022, Jain felt the “car was getting overheated” in the tech sector, and sold down these stocks. But he started buying again last year and GQG’s top 10 holdings reads like a who’s who of this bull market: Nvidia, Meta Platfoms, Ozempic maker Novo Nordisk, Microsoft, Alphabet, Eli Lily, Petrobras, Total Energies, Visa and Amazon.

Late in the analyst call, CEO Tim Carver revealed the second big hook: low fees. Carver delivered what was effectively a stinging attack on rival managers, claiming their bloated headcounts gave them little choice but to charge fat fees.

GQG’s weighted average management fee of 48.8 basis points compares to 70 basis points at Magellan, and 112 basis points at Platinum. And Carver can’t see rivals closing the gap. “Now it becomes very, very difficult for firms like that to bring headcount down to a level that they would need to, to sustain the fee margins that we charge on our products.”

 

[dyna]

Another $ 6 Billion funds inflow for the 1/4 .
GQG seems to being coasting along OK.
S.P. up 4% on the news release , to $ 2 .29 .

 

[dyna]

S.P. now at $ 2. 53 . Investor Roadshow Report for 1st Half of 2024 is out today . They've done well with performance . F.U.M. increase has been impressive too , reflected in the run up in share price from $ 1.50 in January .
$ 3 .5 Billion exposure to markets here in OZ . $ 29 Billion to US Mutual Funds .
And... ( here's the worry ) : $ 15 Billion new exposure to Private Markets . Not a stock to set and forget , I suppose. Will have to watch more closely from now on .

 

[qldfrog]

S.P. now at $ 2. 53 . Investor Roadshow Report for 1st Half of 2024 is out today . They've done well with performance . F.U.M. increase has been impressive too , reflected in the run up in share price from $ 1.50 in January .
$ 3 .5 Billion exposure to markets here in OZ . $ 29 Billion to US Mutual Funds .
And... ( here's the worry ) : $ 15 Billion new exposure to Private Markets . Not a stock to set and forget , I suppose. Will have to watch more closely from now on .

I have an open buy order but indeed 32% in private funds which might be a startup to track school pickup queue or a patch of land..with great potential..who knows..

 

[dyna]

Oh , better check if that's 32 % of total F.U. M.
Doesn't sound right , does it ?
I'll have to go read it again , s..l...o...w...l..y ..
Might not look so alarming , after all , eh ?

 

[dyna]

$ 15 Billion intake for month of August takes F.U.M. up to $ 161 Billion .
So the $ 15 Billion exposure to unlisted assets looks to be about 9 % of total assets .
Nothing to worry about , then ?
It is a lot of dough . Need to keep that in mind .

 

[qldfrog]

$ 15 Billion intake for month of August takes F.U.M. up to $ 161 Billion .
So the $ 15 Billion exposure to unlisted assets looks to be about 9 % of total assets .
Nothing to worry about , then ?
It is a lot of dough . Need to keep that in mind .

My green light in a sea of red

 

[qldfrog]

A nice surprise so far since the 5th purchase

 

[qldfrog]

I should havekept quiet: the freedom fries of the market taught me a lesson :-2.43% today
I still hope it will follow the general euphoria

 

[qldfrog]

I should have kept quiet: the freedom fries of the market taught me a lesson :-2.43% today
I still hope it will follow the general euphoria

No real sadness "Dona"
Still handsome profit on that parcel and with minerals going gangbuster, even the super :mostly cash, reduced by half September exposure, and PM focused get a 5 digit boost.
This is a very good week, and from now on, i will shut up especially about my recent successes

 

[Value Hunter]

GQG Partners has had $US10 billion ($15 billion) of fund inflows which helped lift total assets under management to a record $US120 billion. Two factors drive that increase.

The first is impressive performance. GQG’s flagship global equity fund delivered a 34.1 per cent return in the year ended January net of fees, 11.7 per cent above its benchmark, and over the past three years has delivered 18.8 per cent, or 7.3 per cent ahead of its benchmark.

On a call with analysts, executive chairman and chief investment officer Rajiv Jain explained how the firm has cleverly ridden the rise, fall and renewed surge of the global tech sector.

In 2021 and 2022, Jain felt the “car was getting overheated” in the tech sector, and sold down these stocks. But he started buying again last year and GQG’s top 10 holdings reads like a who’s who of this bull market: Nvidia, Meta Platfoms, Ozempic maker Novo Nordisk, Microsoft, Alphabet, Eli Lily, Petrobras, Total Energies, Visa and Amazon.

Late in the analyst call, CEO Tim Carver revealed the second big hook: low fees. Carver delivered what was effectively a stinging attack on rival managers, claiming their bloated headcounts gave them little choice but to charge fat fees.

GQG’s weighted average management fee of 48.8 basis points compares to 70 basis points at Magellan, and 112 basis points at Platinum. And Carver can’t see rivals closing the gap. “Now it becomes very, very difficult for firms like that to bring headcount down to a level that they would need to, to sustain the fee margins that we charge on our products.”

The long term problem with fund managers is that scale is a double edged sword. Short term profitability increases because if its a well managed business they can probably go from $100 billion to $200 billion in FUM with only 10% more headcount and 15% more marketing spend etc. If you are doing things right you should get good margin expansion while simultaneously reducing fees for customers.

The downside however is once you get past a certain size it starts to impact returns. For example if you get to $200 billion plus of FUM at the point you are mostly restricted to buying only the larger stocks.

Lets assume for example you have $200 billion of FUM spread across various products (for example 12 different funds) and lets say for example that equates to 500 stock positions in total. That is an average investment per position of $400 million dollars!! If you are investing $400 million in a single stock on average that basically precludes micro-caps and small cap stocks or at least makes their performance largely irrelevant if they are small positions (say $50 million, etc).

This means you are largely restricted to a much smaller universe of stocks which will be large caps and the bigger mid cap stocks e.g. stocks in the S&P 500,stocks in the ASX 200, stocks in the Nikkei 225, etc. This means firstly you have a smaller pool of stocks to choose from, secondly the larger companies tend to be better covered and researched by analysts meaning larger companies are less frequently undervalued. In addition the rise of passive index funds has pushed up the valuations of larger stocks vs smaller stocks meaning its harder to find undervalued stocks in the large cap space.