Inside Active by Bloomberg Intelligence GQG Partners’ Sid Jain on Forward-Looking Quality
Oct 14, 2025
Sid Jain, Deputy Portfolio Manager at GQG Partners, shares insights on the firm’s quality investment strategy and its US Select Quality Equity Fund. He highlights that high-quality stocks are at historic price levels, posing risks similar to the dot-com era. Jain discusses the integration of growth with quality, emphasizing durable earnings and cautious momentum approaches. Additionally, he reveals how non-traditional research has influenced investment views, demonstrating the importance of a proactive risk management culture.
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CapEx Spikes And Slowing Growth Signal Risk
- Rapid, large-scale CapEx spikes often precede poor forward equity returns across history.
- Decelerating revenue growth and circular vendor financing are warning signs for tech's forward-looking quality.
Target 10% Total Return From Two Levers
- Prefer companies that can compound ~10% annually via EPS growth plus dividend yield.
- Be comfortable owning either growth-heavy software or dividend-heavy energy if they meet that total-return target.
Cycles Define Durable Earnings Opportunities
- Long-term capital cycles matter when assessing durable earnings and sector timing.
- Investing in cyclical troughs (e.g., energy in 2021) can offer better forward-looking quality than late-cycle leaders.