Portfolio Management GQG versus MFG, page-17

Hi @regalinvestor

I am not 100% sure on the secret sauce of GQG’s high growth, but Rajiv Jain has been growing FUM at a rapid rate. Question is do we invest in a business that is growing rapidly or the actual fund. Always a challenge to know the difference, good fund performance should take care of the business. GQG’s employees are invested in both.

Rajiv doesn’t label GQG as a value investor, but more Active with no particular investment style. It is whatever the best investment opportunity is. GQG after all stands for Good Quality Growth. I would say GQG investment style is close to the GARP method and employs Phil Fisher’s scuttlebut approach with employees mandated to look at the pros and cons of an investment. GARP because of the detail in one of his recent interviews - as an example, Rajiv highlighted Volkswagen is about to produce more electric cars than Tesla. Volkswagen is trading on a PE Ratio of 5.5, Tesla while a bit of a different business is very expensive. It would currently take 295 years to earn $1 back from Tesla compared to Volkswagen’s 5.5 years. This may change due to the growth of the Tesla business, but Volkswagen is selling more than what Tesla is. What business is growing quicker, Tesla or Volkswagen?

If you look at the GQG business, Pacific Current’s investment in late 2016 has essentially multiplied by 60 times, PAC invested $5M and assets value at $2 float price (cash and shares), $295.3M. Not saying that will happen in the next five years, but I think there is significant momentum to push it further forward, maybe a 2 or 3 bagger in five years.

Hope that meets your criteria for growth investing.

Best of Luck
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