On this article, we focus on the highest 10 tech inventory picks of Rajiv Jain’s GQG Companions as of the top of Q3 2021 and assess their efficiency over the previous 12 months. If you would like to skip our detailed evaluation of Jain historical past, funding philosophy and hedge fund efficiency, go straight to Was Rajiv Jain’s GQG Partners Right About These 5 Tech Stocks?.
We ready the precise contents of this text in January 2022, once we analyzed Rajiv Jain’s GQG Companions Q3 2021 Portfolio to debate the highest 10 hedge fund tech picks on the time. We publish this text in the present day as a result of it’s at all times fascinating for our readers to investigate how good the so-called “sensible cash” are in the case of inventory selecting. Once we take a look at hedge funds’ inventory promote/choose in hindsight, we are able to higher analyze their efficiency and see if they’re proper or mistaken.
On this article, you will note GQG Companions’ high 10 tech inventory picks from Rajiv Jain as of the third quarter of final yr.
To evaluate the efficiency of those tech shares and hedge fund, we talked about their efficiency over the previous 12 months.
Nevertheless, we should keep in mind the 2022 market crash when studying this text. You may discover that many of the shares on this checklist have misplaced worth over the previous 12 months. Nevertheless, this doesn’t imply that GQG was utterly mistaken. It’s a main hedge fund that believes in holding shares for longer intervals of time. These tech holdings might find yourself paying dividends for the hedge fund within the coming months and years as analysts consider the market might rebound strongly in 2023 and past.
Earlier than seeing GQG’s tech inventory picks, let’s examine our primer on the hedge fund and its supervisor that we wrote in January.
GQG Partners Based in 2016 by Rajeev Jain, he’s the Chairman, Portfolio Supervisor and Funding Supervisor of Hedge Fund. GQG Companions is headquartered in Fort Lauderdale, with workplaces in Seattle, New York, London and Sydney. The 13F portfolio in Jain’s fund is valued at $36.5 billion, in keeping with third-quarter filings.
Jain GQG Companions primarily focuses on the IT, Healthcare, Finance, Vitality, Telecom and Shopper Appreciation sectors. The hedge fund invests in individually managed accounts, personal funds, US mutual funds, UCITS funds, Australian funds and CITs. Jain’s funding methods revolve round world equities, dividend investing, worldwide equities, rising markets and US shares.
Rajiv Jain’s GQG Companions bought 15 new shares within the third quarter, bought further stakes in 38 securities, bought off 11 shares, and lowered holdings in 26 corporations. The highest fund purchases for the third quarter included Visa Inc. (NYSE:Fifth), salesforce.com, inc. (New York Inventory Trade:CRM), and Exxon Mobil Company (NYSE:xom). Whereas, GQG Companions has lowered its holdings in Alibaba Group Holding Restricted (NYSE:Baba), Humana Inc. (NYSE:Hmm), and Financial institution of America Company (NYSE:Buck).
10. ZoomInfo Applied sciences Inc. (NASDAQ:costume)
GQG Companions stake worth: $323,777,000
Inventory efficiency over the previous 12 months: -60%
ZoomInfo Applied sciences Inc. (NASDAQ:ZI) is a subscription-based SaaS firm headquartered in Vancouver, Washington. ZoomInfo Applied sciences Inc. gives (NASDAQ: ZI) is an info and intelligence platform that permits gross sales, advertising and human sources professionals to entry related enterprise information. The corporate closed the third quarter with greater than 25,000 clients, and greater than 1,250 clients with annual contracts of $100,000 and up.
Credit score Suisse analyst Phil Winslow kicked off protection of ZoomInfo Applied sciences Inc. (NASDAQ:ZI) on November 16 with an Outperform score and a value goal of $100. The analyst considers ZoomInfo Applied sciences Inc. (NASDAQ:ZI) is the “clear chief” in go-to-market intelligence options and believes the Excellent score is justified in comparison with present ranges. The corporate’s superior connectivity information is a serious aggressive benefit that can endure.
over here is what Baron Funds has to say about ZoomInfo Applied sciences Inc. (NASDAQ: ZI) in its third quarter 2021 investor letter:
The suitable inventory choose for communications companies got here from ZoomInfo Applied sciences Inc. , a market-leading intelligence platform for gross sales and advertising groups. We consider the corporate’s latest acquisition of Refrain.ai, a conversational intelligence firm, has tremendously elevated the info visibility and advantages that ZoomInfo can supply its shoppers. As well as, its natural income accelerated for the fifth consecutive quarter and administration considerably raised its earnings steerage.”
9. salesforce.com, inc. (New York Inventory Trade:CRM)
GQG Companions share worth: $586,785,000
Inventory efficiency over the previous 12 months: -47%
Rajeev Jain has acquired a stake in salesforce.com, inc. (NYSE: CRM) in the course of the third quarter of 2021, it bought 2.16 million shares of the corporate, valued at $586.7 million, representing 1.60% of its fund portfolio for the third quarter. salesforce.com, inc. (NYSE: CRM) is a cloud-based software program firm that gives buyer relationship administration software program and purposes to assist automate advertising and information analytics.
UBS analyst Carl Kerstead downgraded Salesforce.com, inc. (NYSE: CRM) on January 4 to Impartial from Purchase with a goal of $265, down from $315, citing price pressures which might be more likely to have an effect on the corporate’s development in 2022.
Salesforce.com Inc., a cloth contributor within the quarter, is the dominant supplier of buyer relationship administration (CRM) software program and know-how. Salesforce has excessive retention charges, pricing energy, a big and rising addressable market, excessive free money stream, and a aggressive moat. The corporate continues to carry out nicely, and we consider the worldwide pandemic has solely improved its outlook and future earnings.”
8. Accenture plc (NYSE:ACN)
GQG Companions stake worth: $631,768,000
Inventory efficiency over the previous 12 months: -18%
Accenture plc (NYSE: ACN), an Irish know-how and advisory companies agency, is likely one of the high tech shares from GQG Companions’ portfolio within the third quarter, because the hedge fund elevated its stake in Accenture plc (NYSE: ACN). 7% within the third quarter. Jain’s fund owns 1.97 million shares of Accenture plc (NYSE: ACN), valued at $631.7 million, which is 1.72% of the whole funding for the third quarter.
Barclays analyst Ramzi El Assal on Dec. 20 raised the worth goal for Accenture plc (NYSE:ACN) to $455 from $384 and maintained the inventory’s obese score after its fourth-quarter earnings report.
Within the third quarter of 2021, 56 hedge funds have been optimistic at Accenture plc (NYSE:ACN), up from 52 within the earlier quarter. Nikolai Tangin Accu Capital She is the corporate’s largest shareholder, with a web price of $718.7 million.
over here is what Polen International Progress has to say about Accenture plc (NYSE:ACN) in its third quarter 2021 investor letter:
“Accenture continues to carry out nicely as enterprise has grown in the course of the pandemic. Accenture has benefited as corporations all over the world have sought a trusted companion to allow digital transformation. These driving the brand new world are accelerating to take a position, whereas the laggards are investing to shut the hole. These are two examples Unbelievable on the accelerating tendencies of the pandemic that have been already on their manner, making leaders extra resilient.”
7. Adobe Inc. (NASDAQ:ADBE)
GQG Companions stake worth: $709,391,000
Inventory efficiency over the previous 12 months: -49%
Adobe Inc. (NASDAQ: ADBE) is a California-based multinational pc software program firm, finest recognized for its purposes similar to Adobe Photoshop, Adobe Illustrator, Adobe Acrobat Reader, Adobe Artistic Suite, Adobe Artistic Cloud, Dreamweaver, and others. Rajiv Jain owns $709.3 million in Adobe Inc. (NASDAQ: ADBE) as of September 2021, which represented 1.94% of his whole funding within the third quarter.
UBS analyst Carl Kerstead downgraded Adobe Inc. (NASDAQ:ADBE) declined to purchase impartial with a goal of $575, down from $635, on considerations that know-how spending has dragged on in 2020 and 2021 and that the phenomenon will put stress on Adobe Inc. (NASDAQ: ADBE) in 2022.
over here is what Ritchie Capital Group has to say about Adobe Inc. (NASDAQ: ADBE) in its investor letter for the second quarter of 2021:
Adobe Methods (ADBE – up 24.8%) – Prior to now 15 years, Adobe has remodeled itself right into a software program big, greater than tripling its income since 2010. The corporate is finest recognized for its namesake PDF reader and picture modifying software program Photoshop. That stated, ADBE sells a full suite of software program merchandise by way of a recurring subscription mannequin.The corporate moved from promoting packaged software program to recurring subscriptions in 2013 and has grown income constantly since then.The corporate generated $13 billion in income in 2020 with 88% of gross margins “.
6. Amazon.com, Inc. (NASDAQ:AMZN)
GQG Companions share worth: $882,550,000
Inventory efficiency over the previous 12 months: -47%
Jeff Bezos’ Amazon.com (NASDAQ:AMZN) introduced Jan. 5 that its Alexa voice assistant is heading into area. NASA’s next-generation rocket shall be outfitted with Amazon.com, Inc. (NASDAQ:AMZN) from Alexa and Cisco Methods, Inc. (NASDAQ:CSCO) Webex Communications Platform. Alexa will present info and companionship to astronauts, and the Webex platform will permit video conferencing from area to Earth.
Jain’s GQG Companions owns 268,698 shares of Amazon.com, Inc. (NASDAQ: AMZN), at $882.5 million, represented 2.41% of the fund’s funding within the third quarter.
Monness Crespi analyst Brian White famous on Dec. 27 that shares of Amazon.com, Inc. (NASDAQ:AMZN) has pulled again from a “wholesome market rally” this yr after shares carried out strongly in 2020.
over here is what the Davis Alternative Fund says about Amazon.com, Inc. (NASDAQ: AMZN) in its third quarter 2021 investor letter:
E-commerce, on-line search, promoting, social media and software program are one other element of the portfolio that’s proving to be a horny enterprise. Market leaders similar to Amazon.com dominate the net portion of the fund. We’re attracted to those names based mostly on the dimensions and fast growth of their market alternatives globally, their means to generate and develop new income streams by way of steady innovation, vital working leverage as they proceed to increase and the flexibility to focus and extremely aggressive management groups. If bought at affordable costs, in our expertise some of these companies can meaningfully contribute to long-term outcomes.”
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