India’s investments across six of GQG’s funds increased in value to $9.9 billion from $4.4 billion a year earlier, as per data collated by Bloomberg from the most recent regulatory filings and information available on the investor’s website, which is based in Florida.
Under the leadership of renowned investor Rajiv Jain, GQG Partners LLC saw the value of its India portfolio more than quadruple in just over a year, thanks to stock selections that have produced impressive returns in addition to its widely reported investments in the Adani Group.
India investments across six of GQG’s funds increased in value to $9.9 billion from $4.4 billion a year earlier, as per data collated by Bloomberg from the most recent regulatory filings and information available on the investor’s website, which is based in Florida.
In the India equities market, which crossed the $4 trillion threshold last week, GQG added stocks from the consumer goods, energy, and infrastructure sectors, solidifying its position as one of the top performers in the developing world. At a time when billions of dollars are being invested by foreign investors seeking alternatives to China in India, thanks to Prime Minister Narendra Modi’s nation-building push, billions of dollars are being used to build roads, airports, bridges, and power facilities.
For four mutual funds and two other funds, Bloomberg’s calculations are based on the most recent holdings in Indian equities that GQG has declared, as well as the most recent closing share prices. Given that the US investment business has additional funds whose portfolio information is unavailable, this may not fully represent its exposure to India.
The valuation of GQG’s Adani stake has skyrocketed to $7 billion, providing support for Jain, who defied expectations by purchasing $1.9 billion worth of shares in the shortseller-damaged company in March and then adding more. However, he and his fund managers have also purchased a number of less ostentatious Indian stocks, which have increased by almost 50% this year, outpacing the benchmark S&P BSE Sensex’s 15% gain.
What’s In and Out
Between April and September of this year, the largest fund, GQG Partners Emerging Markets Equity Fund, made its initial purchases of JSW Energy Ltd., Patanjali Foods Ltd., Macrotech Developers Ltd., Max Healthcare Institute Ltd., and IDFC initial Bank Ltd. It added, among other securities, State Bank of India Ltd. and ITC Ltd., the fund’s largest wager, according to disclosures.
Additionally, it sold its interests in Bajaj Finserv Ltd., Infosys Ltd., Cipla Ltd., and Reliance Industries Ltd. In 2023, all of these have underperformed in comparison to the Sensex.
In response to an email requesting views on their investment plan in India, a representative for GQG declined to comment.
Born in India, Jain came to the US in 1990 to pursue his MBA. He co-founded GQG Partners in 2016 and has since grown it to become a $113 billion powerhouse. In contrast to many of his contemporaries, Jain rarely appears on television, doesn’t have an account on X, the old Twitter, and isn’t particularly fond of companies that create hypersonic missiles or driverless cars.
Rather, he invests in businesses that have a distinctly 20th-century vibe, such as banking, tobacco, and energy. This is reflected in GQG’s portfolio of Indian stocks.
In a June interview with Bloomberg, Jain played down the political and corporate governance concerns that the Adani Group was facing and stated that his company intended to purchase additional Indian equities.
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According to a Bloomberg examination of records, as of October end, nine GQG funds—which comprise mutual funds, collective investments, and managed funds—had stakes in India totaling $14.5 billion, or around 20% of their total assets under administration. Just six funds, though, have their portfolio details available. Since last year, investments in India have increased by 125%.
Outsized Bets
Jain, who is renowned for favoring defensive, secure securities before placing extravagant wagers on them, attracted attention from investors worldwide in March when he invested in four Adani Group equities, just weeks after short-seller Hindenburg Research accused the Gautam Adani-led company of engaging in corporate wrongdoing. Despite refuting these claims, Adani Group’s market worth was once reduced by more than $150 billion due to the market meltdown.
GQG invested more than just one share in Adani’s battered equities; Jain referred to them as “one of the best infrastructure assets” in India. In an interview with Bloomberg in April, he stated that although Hindenburg’s charges appeared disorganized “from a Western point of view,” they might not have been as serious in the Indian corporate environment.
Adani Group’s market value has risen by almost $80 billion since GQG’s March acquisition, mostly due to a surge during the last two weeks.
Nevertheless, not every choice made by GQG has proven to be successful. A few have underperformed the Sensex, including ICICI Bank Ltd. and HDFC Bank Ltd., which its EM fund added this year.
However, because of the disproportionate gains in some of the portfolio’s other holdings, such as Adani, the overall impact on the portfolio has been minimal. Furthermore, Jain doesn’t appear to be involved in it long-term.
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In the June interview with Bloomberg, Jain highlighted infrastructure as the Indian industry to watch, despite GQG’s preference for “private sector banks, IT, and consumer staples.” Then, he stated, “We feel that infrastructure is the new story and still underappreciated.”
