The GQG Partners Inc (ASX: GQG) share price is launching higher today amid the company’s appearance in the media and its latest funds under management announcement.
As of 31 January, the asset management firm had US$91.3 billion of unaudited funds under management. That’s 0.1% more than at the end of December.
Meanwhile, the firm’s co-founder, chief investment officer and chair Rajiv Jain told the Australian Financial Review (AFR) it’s selling out of tech stocks in favour of other sectors.
At the time of writing, the GQG Partners share price is $1.74, 6.75% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) has dipped 0.06% today, while the All Ordinary Index (ASX: XAO) has slipped 0.13%.
What’s driving the GQG Partners share price on Monday?
The GQG Partners share price is strengthening today. Meanwhile, Jain has told the AFR the firm is selling down its exposure to tech shares as he predicts growth in the sector has slowed.
While the firm reportedly “underperformed a little” in 2021 following the shift, Jain was committed to “danc[ing] when the party’s on.”
“[O]ur view is you can’t wait til the music stops; you’ve got to make some preparations,” he was quoted as saying. “Technology is no longer the next growth spot; it’s yesterday’s growth spot.”
The firm’s step away from tech shares has reportedly allowed it to invest more into base metals, utilities, healthcare, and staples.
Though, Jain is bullish on the energy sector, believing it to be a key contributor to the future of the energy transition.
Additionally, the firm has reportedly increased its exposure to emerging markets, excluding China.
He mentioned underpinnings in markets such as Brazil, India, Indonesia, Mexico, and Russia are “mostly on the positive side.” Though, he noted current political tensions pose risks to such investments.
“These emerging markets have struggled for almost a decade, so currencies have already gone down, interest rates over the past year and a half have already gone up.”
How much the firm underperformed by in 2021 is yet to be seen. GQG plans to release its results for the 12 months ended 31 December on 25 February.
How has GQG Partners performed since its IPO?
GQG Partners debuted on the ASX in late October following a $1.2 billion initial public offering (IPO).
Its funds under management have increased 6% since 31 September 2021 – the last update prior to its IPO.
Unfortunately, its share price hasn’t been so successful. Since listing, the GQG Partners share price has slumped 11%.
It’s also currently 13% lower than its prospectus’ offer price of $2 per share.
The post ‘You can’t wait til the music stops’: Why is the GQG share price leaping 6% today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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