Interesting to look at the large bets he is taking in the GQG...

Interesting to look at the large bets he is taking in the GQG Partners Global Equity fund, class A (at the end of January 23) :
- underweight consumer discretionary (by 11 ppt) and IT by (17 ppt),
- overweight energy (by 19 ppt) and healthcare (by 15 ppt).

His major bet is now about IT, as he Rajiv estimates that 40 % of S&P 500 is "tech-centric" (cf bloomberg interview on the 23rd of Jan).
Given the sensitivity of IT valuation to interest rates, it is obviously also a bet on interest rate trend, while earnings have also disappointed.

Good to see that he accepted to lose some performance in the short term, when tech rebounded during Q4 22 (calendar year).
His global portfolio is better positioned now that (long term) interest rates are again increasing.

As a global fund manager, GQG funds has a high exposure to USD, which may be interesting for Australian investors.
If his funds perform in line with S&P 500 in Feb, they should show a positive absolute performance, given the significant rebound of the USD (4 %+ vs AUD), more than offsetting the decrease of S&P 500 (in USD).

Given the long experience of Rajiv on emerging markets, interesting to hear his view on China.
For him, China was just a short term trade on reopening.