GQG Partners Inc (GQG)
Thanks again for your helpful advice. I have some GQG which seems to be heading south in price. Is it worth holding for the dividend yield? Regards, David
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Answer
Hi David,
We hold global funds management company GQG in our Active Growth and Income Portfolios with both positions down ~5% on Wednesday as the stock traded below its 2024 low. The main issue is around performance in recent months as the manager adopts a more cautious approach towards tech/AI and consumer discretionary sectors, which led to some outflows of funds – $US1.7bn in September, with AUM still sitting $US167.2bn despite experiencing the relative underperformance accross their strategies.
Ultimately, they are defensively set accross portfolio’s and underperformance will only be addressed if the market goes into a risk off mood. We viewn our holding as a contrarian play on markets, and we think this is one fund manager who will start to perform better if markets wobble.
- We believe GQG is cheap around $1.60, trading on an Est. valuation of 7.5x for FY25. They’re a good manager, having a rough short term performance outcome – we’ve all been there, plus we like its strong dividend while we wait.
