In this article, we discuss the top 5 stock picks of Rajiv Jain’s GQG Partners. If you want our detailed analysis of these stocks, go directly to the Top 10 Stock Picks of Rajiv Jain’s GQG Partners.
5. Meta Platforms, Inc. (NASDAQ:FB)
GQG Partners’ Stake Value: $1,597,927,000
Percentage of GQG Partners’ 13F Portfolio: 4.69%
Number of Hedge Fund Holders: 266
As the parent organization of leading social media platforms like Facebook, Instagram, and WhatsApp, Meta Platforms, Inc. (NASDAQ:FB) is one of the Big Five US tech firms, and a top stock in GQG Partners’ Q2 portfolio. Rajiv Jain, via his investment firm, owns stakes worth $1.59 billion in Meta Platforms, Inc. (NASDAQ:FB), as of the end of June, which accounts for 4.69% of Jain’s portfolio.
Billionaire investor Ken Fisher’s Fisher Asset Management is one of the top stakeholders in Meta Platforms, Inc. (NASDAQ:FB), with 7.59 million shares worth $2.57 billion. Overall, 266 hedge funds monitored by Insider Monkey’s database of elite funds were long Meta Platforms, Inc. (NASDAQ:FB) at the end of Q2.
Meta Platforms, Inc. (NASDAQ:FB) posted Q3 results on October 25, with the EPS for the quarter totaling $3.22, beating estimates by $0.04. Revenue for the period failed to meet forecasted revenue, missing estimates by -$513.23 million at $29.01 billion.
Here is what Polen Capital has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter:
“Facebook’s stock was pressured on concerns about regulation in the quarter. We are constantly monitoring the potential regulatory risks to Facebook (and all of our holdings). At this point, we see very little chance that regulation changes Facebook’s business model in a meaningful and adverse way. Regarding the recent data shared by a former Facebook employee and the company itself on some of the unfortunate negative consequences of social media, we recognize these types of issues will inevitably linger in different forms and fashions well into the future. We have been focused on the ability of Facebook to identify and mitigate these negative consequences while amplifying the value users typically cite for its apps across a long list of use cases. We continuously monitor the vibrance of the user base on Facebook’s apps to confirm that value.”
4. Microsoft Corporation (NASDAQ:MSFT)
GQG Partners’ Stake Value: $1,646,398,000
Percentage of GQG Partners’ 13F Portfolio: 4.83%
Number of Hedge Fund Holders: 238
Bill Gates’ Microsoft Corporation (NASDAQ:MSFT) is a highly sought-after software and technology stock, with 238 hedge funds tracked by Insider Monkey as of June 2021 holding stakes in the company, worth more than $62 billion. One of Microsoft Corporation (NASDAQ:MSFT)’s leading stakeholders is GQG Partners, who holds over 6 million shares in the company, valued at $1.64 billion, representing 4.83% of the firm’s Q2 portfolio.
Martin Taylor’s Crake Asset Management is the largest stakeholder in Microsoft Corporation (NASDAQ:MSFT), with a position amounting to $57.42 billion.
Tom Warren from The Verge revealed in a November 10 report that Microsoft Corporation (NASDAQ:MSFT) is partnering with Meta Platforms, Inc. (NASDAQ:FB) to integrate Microsoft Teams into Workplace by Meta, which will allow employees to react and respond to digital meetings in real time, without the hassle of switching applications. Employees can also access their Workplace content via an app on Microsoft Teams.
Microsoft Corporation (NASDAQ:MSFT) released its Q3 earnings on October 26. EPS for the quarter came in at $2.27, exceeding analysts’ estimates by $0.19. Revenue for the period equaled $45.32 billion, exceeding estimates by $1.33 billion.
Here is what Alger has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter:
“Microsoft Corporation was among the top contributors to performance during the third quarter. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 51% in the second quarter. This high unit volume growth is a primary driver of the company’s higher share price, but the company’s strong operating execution has enabled margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”
3. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
GQG Partners’ Stake Value: $1,698,597,000
Percentage of GQG Partners’ 13F Portfolio: 4.99%
Number of Hedge Fund Holders: 25
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a Brazilian multinational petroleum corporation that specializes in petroleum products, natural gas, lubricant, fertilizers, biofuels, and petrochemicals. 4.99% of the 13F securities at GQG Partners are represented by the stake in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), which is valued at $1.69 billion as of June this year.
Earnings per share for Q3 came in at $0.52 on October 28, missing analysts’ consensus estimates by -$0.20. HSBC analyst Lilyanna Yang downgraded Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) from Buy to Hold with a $12 price target on October 14.
As of the second quarter of 2021, 25 hedge funds were bullish on Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), with stakes valued at $2.79 billion.
2. Alphabet Inc. (NASDAQ:GOOG)
GQG Partners’ Stake Value: $2,813,907,000
Percentage of GQG Partners’ 13F Portfolio: 8.26%
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) is an American multinational tech conglomerate, commonly recognized for being the parent company of Google and Google subsidiaries since 2015.
GQG Partners owns 1.12 million shares in Alphabet Inc. (NASDAQ:GOOG), valued at $2.8 billion. Insider Monkey’s database of elite funds indicates that one of the largest stakeholders in Alphabet Inc. (NASDAQ:GOOG) is Aubrey Capital Management, with stakes roughly worth $9.62 billion. Overall, 155 hedge funds were long Alphabet Inc. (NASDAQ:GOOG) as of June this year.
On October 26, Q3 earnings for Alphabet Inc. (NASDAQ:GOOG) were reported. EPS in the period totaled $27.99, beating analysts’ consensus estimates of $23.48 by $4.51. Morgan Stanley analyst Brian Nowak proceeded to keep an Overweight rating on Alphabet Inc. (NASDAQ:GOOG) on November 2, raising the price target from $3,000 to $3,200, following the strong Q3 earnings beat.
Here is what Oakmark Funds has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:
“Alphabet, a U.S. communication services provider, was once again a top contributor for the quarter, solidifying its rank as a top contributing stock for the one-year period. The company’s financial results repeatedly exceeded expectations. In particular, its revenue grew faster than expected and its margin trends improved across all segments. In addition, management has executed $24.4 billion of stock repurchases so far in 2021. After further examination, we recently increased our estimate of Alphabet’s intrinsic value based on the company’s better than expected operating leverage and its notable efficiency improvements. As a result, we continue to believe that Alphabet is trading at a significant discount to its intrinsic value.”
1. NVIDIA Corporation (NASDAQ:NVDA)
GQG Partners’ Stake Value: $2,971,965,000
Percentage of GQG Partners’ 13F Portfolio: 8.73%
Number of Hedge Fund Holders: 86
NVIDIA Corporation (NASDAQ:NVDA) is the largest holding in the Q2 portfolio of Rajiv Jain. Jain, via GQG Partners, owns over 3.7 million shares in NVIDIA Corporation (NASDAQ:NVDA), worth $2.97 billion, representing 8.73% of the firm’s investment portfolio. NVIDIA Corporation (NASDAQ:NVDA) is a California-based multinational technology company that is primarily engaged in developing graphics processing units, central processing units, chipsets, drivers, data processing units, and computer hardware.
According to a report published by Wedbush analyst Mark Bryson on November 12, NVIDIA Corporation (NASDAQ:NVDA) stock is extremely overvalued, trading at 55 times his 2024 estimates for the company. He sees no negative catalysts for NVIDIA Corporation (NASDAQ:NVDA), and believes that company fundamentals are improving. However, Bryson downgraded the stock from Outperform to Neutral, slashing the price target from $300 to $220, owing to the current valuation.
As of Q2, 86 hedge funds monitored by Insider Monkey were long NVIDIA Corporation (NASDAQ:NVDA), up from 80 in the preceding quarter.
Here is what Harding Loevner has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2021 investor letter:
“Within IT, shares of US-based computer chip developer NVIDIA continued their climb as rising demand across segments-from work-from-home laptops to data centers to cryptocurrency mining rigs-led to shortages that translated into surging prices for its chips. Such was the windfall that NVIDIA even made technical changes to some of its products to make them towards what it believes are more sustainable uses. Less attractive to cryptocurrency miners, to steer scarce supply viewed by geography, the lion’s share of excess returns came from good stock performance in the US. In addition to the contributions from NVIDIA and our health care holdings, a pair of IT software and service providers also aided relative returns.”
You can also take a look at Tech Stock Portfolio: 10 Tech Stock Picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management and 10 Stocks to Buy in 2021 According to Guy Spier’s Aquamarine Capital.
