Are you buyers of GQG Partners (ASX: GQG)?
Hi James, Shawn and Team, GQG was trading 50% below it's issue price when it went ex-div today (Wed 21/10). My question is are you a buyer at this price? Thanks Jeremy
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Answer
Hi Jeremy,
GQG has been a frustrating investment for MM in 2026, with the fund manager struggling to stem persistent outflows. The stock traded ex-dividend this week for US3.27c per share and is expected to continue offering an attractive yield of ~12.5%.
If we had no position, we would wait until we see a stabilisation of fund flows before buying it. CIO Rajiv Jain made a big change to positioning in August, pivoting aggressively into semiconductor and chip stocks, a sharp about-face given his long-standing and vocal warnings that the AI-driven tech rally had created a bubble. Their initial timing was good, but global tech & Semi’s in particular have endured a tough 3-weeks, with the ASX-traded SEMI ETF having fallen more than 15%, basically back to where GQG loaded up on the sector. We feel GQG needs this pivot to work.
- We’re cautious here, and need to see a reduction in outflows for us to keep the position.
