Rotated out of tech, and the market bounced back about 40%.
They have maintained that position. If tech keeps roaring, GQG are screwed. They aren't going to make up that difference by chasing the market now, they need to stick to their convictions that money rotates out of momentum and growth.
Magellan found themselves in a similar situation in 2020 over big China bets and holding lots of cash. They predicted the market would come crashing back to earth over valuations concerns. It didn't and China lagged, so double whammy.
Unfortunately, to beat the market you need to make some nonconsensus calls. You have to take risks. Sometimes it works sometimes it doesnt. However, if you make some bad calls, you need to make sure you get the next ones right, because consecutive bad calls (In the case of magellan) destroys confidence. GQG finds themselves squarely in that position right now. If they dont start getting some nonconsensus calls right soon, investors will start leaving their funds. Next 12 months going to be critical.
(20min delay)