GQG adds more Nvidia as chipmaker has a 'new leg', says CIO (updated)

GQG Partners

01/06/2023 19:10

(Adds CIO quotes, context)
    By Carolina Mandl
       NEW YORK, June 1 (Reuters) - A big buyer of Nvidia
Corp's  NVDA.O  shares in the first quarter, Australia-listed
investment firm GQG Partners  QGQ.AX , said it has continued to
increase its exposure to the company since then as the chipmaker
is likely to benefit from a cycle of investment in artificial
intelligence.
    Fort Lauderdale, Florida-based GQG, which manages almost
$100 billion in assets, added 8.2 million shares in Nvidia in
the first quarter, worth $2.3 billion then, according to a
regulatory filing.
    Since then, GQG has "meaningfully increased" its position in
Nvidia, Chief Investment Officer Rajiv Jain said in an
interview. He declined to disclose the amount it has further
invested.
    The chipmaker is likely to give a boost to funds which have
invested in it, as Nvidia's shares have more than doubled year
to date amid an artificial intelligence boom. The company
briefly touched the $1 trillion market capitalization late in
May.
    Two years ago, concerned about the company's high valuation,
GQG had dumped all its Nvidia's shares, just to invest again in
the first quarter. "Now Nvidia has gotten a new leg because of
the ChatGPT-lead, AI narrative, which is very strong," said
Jain, explaining his decision to reinvest.
        Despite Nvidia's recent jump in valuation, he still sees
room for further upside in the share price as the company
recently updated its revenue forecast. Some investors also
believe the stock remains attractive.   
    Jain also said the asset manager is considering raising its
exposure to India's Adani by participating in capital increases
the group is planning. Adani Enterprise and Adani Transmission 
unveiled plans to raise up to $2.5 billion from the stock
market. Adani Green Energy also said it plans to tap investors.
        "We would very likely participate depending on the
pricing in future offerings," said Jain. "There is a lot of
opportunities that Adani has. There's a big privatization
happening in airports and in transmission and distribution
assets. Who else has got to participate in a big way in India?"
        Bloomberg reported earlier on GQG's plans to buy
additional shares in Adani group.
    Jain said GQG has invested roughly $2.5 billion in five
undisclosed Adani companies after a report from U.S.-based
shortseller Hindenburg earlier this year raised governance
concerns about the group, which has denied any wrongdoing.
    Asked whether he had concerns about the Adani group’s
governance, Jain said investors have different opinions about
assets. “There's somebody who has a negative view and somebody
has a positive, that's how trading happens. Somebody's selling,
somebody buying.”  
        
  
    

 (Reporting by Carolina Mandl; Editing by Susan Fenton)
 ((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;))