Were Rajiv Jain’s GQG Partners Right About These 10 Technology Stocks? | Wbactive

In this article, we discuss Rajiv Jain’s GQG Partners’ top 10 tech stock picks as of the end of Q3 2021 and rank their performance over the past 12 months. If you’d like to skip our detailed analysis of Jain’s history, investment philosophy and hedge fund performance, go straight to Were Rajiv Jain’s GQG Partners Right About These 5 Technology Stocks?

We prepared the actual content of this article in January 2022, when we analyzed Rajiv Jain’s GQG Partners Q3 2021 portfolio to discuss the hedge fund’s top 10 tech picks at the time. We’re publishing this article today because it’s always interesting for readers to analyze how good so-called “smart money” is at picking stocks. By looking at hedge fund stock selections/sales with hindsight, we can better analyze their performance and see if they were right or wrong.

This article shows Rajiv Jains GQG Partners’ top 10 tech stock picks for the third quarter of last year.

To gauge the performance of these tech stocks and the hedge fund, we mentioned their performance over the past 12 months.

However, while reading this article, we should keep the 2022 market crash in mind. You’ll notice that most of the stocks on this list have fallen in value over the past 12 months. However, that doesn’t mean GQG was completely wrong. It’s a large hedge fund that believes in holding stocks for long periods of time. These tech holdings could generate gains for the hedge fund over the coming months and years as analysts believe the market could have a strong recovery in 2023 and beyond.

Before we look at GQG’s tech stock picks, let’s review our introduction to the hedge fund and its manager that we wrote in January.

GQG Partners was founded in 2016 by Rajiv 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. The Jain Fund’s 13F portfolio is valued at $36.5 billion, according to third-quarter filings.

Jain’s GQG Partners focuses primarily on the information technology, healthcare, financial, energy, communications and consumer discretionary sectors. The hedge fund invests in segregated accounts, private 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 equities.

Rajiv Jain’s GQG Partners bought 15 new shares, bought additional shares in 38 securities, sold 11 shares and reduced holdings in 26 companies in the third quarter. The Fund’s top purchases during the third quarter included Visa Inc. (NYSE:V), salesforce.com, inc. (NYSE: CRM) and Exxon Mobil Corporation (NYSE: XOM). Conversely, GQG Partners reduced holdings in Alibaba Group Holding Limited (NYSE:BABA), Humana Inc. (NYSE:HUM) and Bank of America Corporation (NYSE:BAC).

Notable stocks in Rajiv Jain’s Q3 portfolio include Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:FB) and Alphabet Inc. (NASDAQ:GOOG).

Rajiv Jain of GQG Partners

10. ZoomInfo Technologies Inc. (NASDAQ:ZI)

GQG Partners Share Value: $323,777,000

Performance of the stock in 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 human resources professionals to access relevant business data. The company ended the third quarter with over 25,000 customers and more than 1,250 customers with annual contract values ​​of $100,000 and above.

Credit Suisse analyst Phil Winslow began coverage on November 16th on ZoomInfo Technologies Inc. (NASDAQ:ZI) with an Outperform rating and a $100 price target. The analyst views ZoomInfo Technologies Inc. (NASDAQ:ZI) as the “clear leader” in go-to-market intelligence solutions and believes a premium valuation is warranted compared to current levels. The company’s superior contact data is a key competitive advantage that will remain.

here Baron Funds said of ZoomInfo Technologies Inc. (NASDAQ:ZI) in its Q3 2021 Investor Letter:

“ZoomInfo Technologies Inc., a leading go-to-market intelligence platform for sales and marketing teams, came to a favorable stock selection in the communications services space. We believe the company’s recent acquisition of Chorus.ai, a conversational intelligence company, has dramatically increased data transparency and the benefits ZoomInfo can offer its customers. In addition, organic sales increased again for the fifth straight quarter and management significantly raised its earnings guidance.”

9. salesforce.com, inc. (NYSE:CRM)

GQG Partners Share Value: $586,785,000

Stock performance over the last 12 months: -47%

Rajiv Jain acquired a stake in salesforce.com, Inc. (NYSE:CRM) in Q3 2021, purchasing 2.16 million shares of the company’s stock for $586.7 million, representing 1.60% of Q3’s portfolio corresponds to his fund. 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 Karl Keirstead downgraded salesforce.com, Inc. (NYSE:CRM) on Jan. 4 on Neutral from Buy with a price target of $265 versus $315, citing cost pressures likely to impact the company’s growth in 2022.

here says Vulcan Value Partners of salesforce.com, inc. (NYSE:CRM) in its Q3 2021 investor letter:

“Salesforce.com Inc., a key contributor for the quarter, is the dominant 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 advantage. The company continues to perform well and we believe the global pandemic has only enhanced its prospects and future returns.”

8. Accenture plc (NYSE:ACN)

GQG Affiliate Share Value: $631,768,000

Stock performance over the last 12 months: -18%

Accenture plc (NYSE:ACN), an Irish company that provides IT and consulting services, is one of the top tech stocks in GQG Partners’ Q3 portfolio, with the hedge fund merging its stake in Accenture plc (NYSE:ACN). 7% increased the third quarter. Jain’s fund owns 1.97 million shares of Accenture plc (NYSE:ACN) worth $631.7 million, accounting for 1.72% of total investments in the third quarter.

Barclays analyst Ramsey El-Assal raised the price target for Accenture plc (NYSE:ACN) to $455 from $384 on December 20, maintaining an overweight stance on the stock following the Q4 earnings report.

Accenture plc (NYSE:ACN) had 56 hedge funds bullish in the third quarter of 2021, up from 52 funds in the previous quarter. Nicolai Tangen’s Ako Capital is the company’s largest shareholder with a stake of $718.7 million.

here Poland Global Growth says of Accenture plc (NYSE:ACN) in its Q3 2021 Investor Letter:

“Accenture continues to perform well as the business has grown during the pandemic. Accenture has benefited as companies around the world have sought a trusted partner to enable their digital transformation. Those who are leaders in the new world are accelerating their investments, while those who are laggards invest to bridge the gap. These are two great examples of the pandemic acceleration trends already in motion that are making leaders more resilient.”

7.Adobe Inc. (NASDAQ:ADBE)

GQG Partners Share Value: $709,391,000

Stock performance over the last 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, among others. Rajiv Jain owns a $709.3 million position in Adobe Inc. (NASDAQ:ADBE) since September 2021, accounting for 1.94% of his total investments in the third quarter.

UBS analyst Karl Keirstead downgraded Adobe Inc. (NASDAQ:ADBE) to neutral from buy with a price target of $635 to $575 on concerns that technology spending will be frontloaded into 2020 and 2021 and that this phenomenon will pressure Adobe Inc. ( NASDAQ:ADBE) growth rate in 2022.

here Richie Capital Group said of Adobe Inc. (NASDAQ:ADBE) in its Q2 2021 Investor Letter:

“Adobe Systems (ADBE – up 24.8%) – Over the past 15 years, Adobe has grown into a software giant, more than tripling its revenue since 2010. The company is famous for its PDF reader of the same name and its photo editing software, Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company switched from selling boxed software to recurring subscriptions in 2013, and revenue has grown steadily ever since. The company had sales of $13 billion in 2020 with a gross margin of 88%.”

6. Amazon.com, Inc. (NASDAQ:AMZN)

GQG Affiliate Share Value: $882,550,000

Stock performance over the last 12 months: -47%

Jeff Bezos’ Amazon.com, Inc. (NASDAQ:AMZN) announced Jan. 5 that its voice assistant, Alexa, is going into space. NASA’s next-generation rocket will feature Amazon.com, Inc.’s (NASDAQ:AMZN) Alexa and Cisco Systems, Inc.’s (NASDAQ:CSCO) Webex communications platform. Alexa would provide information and guidance to astronauts, and the Webex platform will enable video conferencing from space to Earth.

Jains GQG Partners owns 268,698 shares of Amazon.com, Inc. (NASDAQ:AMZN) worth $882.5 million, representing 2.41% of the fund’s Q3 investments.

Monness Crespi analyst Brian White noted on Dec. 27 that Amazon.com, Inc. (NASDAQ:AMZN) stock has lagged this year’s “healthy market rally” after a strong stock performance in 2020.

here Davis Opportunity Fund says in its Q3 2021 Investor Letter about Amazon.com, Inc. (NASDAQ:AMZN):

“E-commerce, online search and advertising, social media and software are other components of the portfolio with proven, attractive business areas. The online part of the fund is currently dominated by market leaders such as Amazon.com. We are attracted to these names because of the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue streams through constant innovation, their great operational leverage as they continue to scale, and their capable, focused, highly competitive leadership teams. In our experience, when purchased at reasonable prices, these types of companies can make a significant contribution to long-term results.”

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Disclosure: None. Were Rajiv Jain’s GQG Partners Right About These 10 Technology Stocks? was originally published on Insider Monkey.

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