Co-founder of GQG Companions, Rajiv Jain, is being dubbed the “anti Cathie Wooden”. He would not spout off on Twitter and he invests in boring, money generative firms, as an alternative of speculative know-how names. 

His portfolio is laden with names in oil, tobacco and banking, Bloomberg wrote in a latest profile. However this technique has been successful. Jain has constructed a $92 billion fund in lower than 7 years since he began. Three of its 4 funds beat the benchmark in 2022, the report says. 

Jain’s Goldman Sachs GQG Companions Worldwide Alternatives Fund has gained 10.8% per 12 months since its inception in December 2016, using his technique of taking massive positions in particular person names. He calls himself a real “high quality development supervisor” whereas referring to his competitors as “quote-unquote high quality development managers.” Bloomberg says that he thinks of them as “imposters”. 

Jain would not thoughts taking bigger swings at firms with impenetrable steadiness sheets. “We attempt to take much less absolute threat. The companies we personal generate lot of free money circulation. So the chance of us dropping on an absolute foundation is rather a lot decrease. However generally which means it’s important to take extra relative threat,” he stated.

He informed Bloomberg: “These sorts of risky years truly assist you to differentiate a bit bit extra. Numerous ‘high quality development’ managers principally blew up. We discovered whether or not they actually personal high quality.”

This 12 months his worldwide fund is up simply 3.4% versus the benchmark’s 7.8%, as 2023 began with a respite for speculative know-how names that the market hasn’t given again but. “I’m not a contented camper as of late,” he says. His technique is to spend money on 40 to 50 massive caps in his worldwide fund, in comparison with the hundreds which might be included within the benchmark. 

Two of his largest holdings are British American Tobacco and Philip Morris Worldwide. 

Jain began reducing his publicity to know-how in late 2021, exemplifying one trait that he thinks units himself other than different managers: the power to acknowledge errors and alter course. “Investing is a recreation of survival as a result of most individuals gained’t survive in the long term. In order that must be the mindset fairly than making an attempt to win on a regular basis. It’s as a lot about avoiding dropping fairly than making an attempt to win,” he informed Bloomberg. 

Colleagues describe him as risk-adverse. Gregg Wolper, a senior analyst at Morningstar, stated: “He’s a lot extra cautious than different development managers. He has a mixture of confidence and but some humility in understanding that he may be fallacious about one thing,” he continued.