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Is Rajiv Jain shorting the market? How else to explain a loss of 1.34% May 12 when most large growth equity funds were up 3 or 4%? Anyone have any insight on this?
Don’t know. The fund has 55% in its top 10 holdings. So one bad actor could ruin the day.
Safe havens like utilities got hit pretty hard today. And bonds fell as rates climbed.
Gold took a thumping. GDX (gold etf) lost 2.82%. Miners got hit extra hard as is normal. GDX (gold miners etf) lost 7.44%. However, I can’t detect any gold or metals exposure in this fund. M* does not show any short positions. FWIW.
When I see your question @dily the first thing I take a look at (for better or worse) is the portfolio composition. The top 10 and sector composition at Fidelity and M* match pretty closely and didn't provide any pokes in the eye with a sharp stick BUT, BUT, BUT they differ from that shown on the GQG website for what that's worth. All 3 show an effective date of March 31, 2025.
I did not read through the prospectus to see if they can short or not but there is this:
"Portfolio holdings are subject to change without notice. Top ten holdings do not represent all securities purchased, sold, or recommended for inclusion in the Fund and no assumption should be made that such securities or future investments were or will be profitable in the future. Country allocations reflect the country of risk of the securities in the portfolio as assigned by Northern Trust, though GQG’s portfolios are constructed based upon GQG’s assessment of each issuer’s country of risk exposure, which may not be the same as Northern Trust’s country assignment. Sector, country, and holdings calculations include cash and may not sum precisely due to rounding. Unless otherwise indicated, data and calculations are sourced from GQG Partners, Northern Trust, MSCI, Standard and Poor's (S&P), Morningstar, and certain fund rating agencies." I added the bolding.)
That’s a very good guess @Mark. I’ve been whipsawed before holding mid-cap stocks that were largely institutionally owned. Sometimes feels like the big players trying to drive out the small investors when a company’s stock continues to fall despite good fundamentals.
Yahoo Finance has quotes for Top 10 holdings and I see negative PM, T, NFLX. Don't know the detail factors, but interest rates rose and that may have hurt T.
Anyway, with only 29 holdings, one may be enough to tank the fund, but we have several pointers here. High conviction comes with some risks.
When I see your question @dily the first thing I take a look at (for better or worse) is the portfolio composition. The top 10 and sector composition at Fidelity and M* match pretty closely and didn't provide any pokes in the eye with a sharp stick BUT, BUT, BUT they differ from that shown on the GQG website for what that's worth. All 3 show an effective date of March 31, 2025.
The portfolios I see at Fidelity and at M* are dated Dec 31, 2024. The factsheet with top ten holdings at the fund's website is dated March 31, 2025.
M* reports a 148% turnover rate, rendering the 2024 reports dubious at best. What jumps out at me is the most recently reported top holding, Philip Morris Int'l (PM). In three months it jumped from #5 (6.08% of portfolio) to #1 (6.51%). By itself, that might not say much, but then one sees Altria (MO) at #4 (4.17%), a completely new holding for 2025. Who knows how much more tobacco the fund bought since March 31.
Some of the PM drop could be because of the dollar's surge, but MO's decline suggests an industry wide dip. Hard to separate the dollar and individual company effects from an industry-wide dip since other major players are foreign. JAPAY (Japan Tobacco ADR) dropped 2.18%, BTI (BAT ADR) dropped 1.58%.
Comments
Safe havens like utilities got hit pretty hard today. And bonds fell as rates climbed.
Gold took a thumping. GDX (gold etf) lost 2.82%. Miners got hit extra hard as is normal. GDX (gold miners etf) lost 7.44%. However, I can’t detect any gold or metals exposure in this fund. M* does not show any short positions. FWIW.
deletedIf I understand SEC regs correctly, the fund is only required to report holdings quarterly. Possibly there’s some new position not yet reported.
(Thanks for posting a new topic.)
I did not read through the prospectus to see if they can short or not but there is this:
"Portfolio holdings are subject to change without notice. Top ten holdings do not represent all securities purchased, sold, or recommended for inclusion in the Fund and no assumption should be made that such securities or future investments were or will be profitable in the future. Country allocations reflect the country of risk of the securities in the portfolio as assigned by Northern Trust, though GQG’s portfolios are constructed based upon GQG’s assessment of each issuer’s country of risk exposure, which may not be the same as Northern Trust’s country assignment. Sector, country, and holdings calculations include cash and may not sum precisely due to rounding. Unless otherwise indicated, data and calculations are sourced from GQG Partners, Northern Trust, MSCI, Standard and Poor's (S&P), Morningstar, and certain fund rating agencies." I added the bolding.)
GQEPX Fact sheet
GQG website
(Edit to add: Given that it is an institutional fund maybe a large institution or 2-3-4-5 wanted out. Just a wild guess.)
Using M*, I see negative UNH, CI; moreover, LLY, NVO didn't participate in the rally as much. https://finance.yahoo.com/quotes/LLY,NVO,UNH,CI/
Yahoo Finance has quotes for Top 10 holdings and I see negative PM, T, NFLX. Don't know the detail factors, but interest rates rose and that may have hurt T.
Anyway, with only 29 holdings, one may be enough to tank the fund, but we have several pointers here. High conviction comes with some risks.
M* reports a 148% turnover rate, rendering the 2024 reports dubious at best. What jumps out at me is the most recently reported top holding, Philip Morris Int'l (PM). In three months it jumped from #5 (6.08% of portfolio) to #1 (6.51%). By itself, that might not say much, but then one sees Altria (MO) at #4 (4.17%), a completely new holding for 2025. Who knows how much more tobacco the fund bought since March 31.
Yesterday, they went up in smoke. PM dropped 2.87% and MO dropped 4.17%.
Some of the PM drop could be because of the dollar's surge, but MO's decline suggests an industry wide dip. Hard to separate the dollar and individual company effects from an industry-wide dip since other major players are foreign. JAPAY (Japan Tobacco ADR) dropped 2.18%, BTI (BAT ADR) dropped 1.58%.