Bloomberg reported on May 23 that Rajiv Jain, the billionaire CEO of GQG Partners, has increased his investment in Gautam Adani's conglomerate by approximately 10% and plans to participate in the conglomerate's upcoming fundraising efforts. This decision reflects Jain's strong belief in the outstanding infrastructure assets present in India, which he considers to be the finest available. The billionaire noted that GQG's investments in Adani were valued at approximately $3.5 billion. Jain stated in an interview with Bloomberg:
“Within five years, we would like to be one of the largest investors in Adani Group depending on the valuation, after the family. We would certainly want to be partners in any of Adani Group’s new offerings.”
Bloomberg mentioned that GQG purchased shares worth nearly $2 billion from a family trust during March, investing in four of Adani's companies. This initial investment provided support to the struggling conglomerate after facing allegations of stock-price manipulation and corporate fraud from Hindenburg Research, a New York-based short-seller. As a result of these accusations, the Adani Group experienced a significant decline in market value, losing over $150 billion at one point.
Jain expressed his lack of concern regarding the allegations made by the short seller, which Adani has consistently denied. He characterized these accusations as commonplace in the business environment of India. Earlier this year, in an interview with Bloomberg News, Jain stated that throughout his 30-year investment career, he had not yet encountered a perfect company. He justified his counterintuitive investment by highlighting the value of Adani Group's businesses, such as its coal mining and airport assets, which align with India's development objectives.
Rajiv Jain was quoted by Financial Times in April 2023, when the billionaire further explained his investment decision in Adani Group. He said:
“Is this perfectly clean? No, it’s not. Is it fraud? No, it’s not. So the difference between the two is what we’re talking about. In the meantime, you are getting irreplaceable assets, at very attractive valuations, which have some tremendous upside.”
During the first three months of 2023, Rajiv Jain's $38.2 billion investment portfolio consisted of several prominent growth stocks, including NVIDIA Corporation (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG), and AstraZeneca PLC (NASDAQ:AZN). In this article, we discuss Jain's top growth plays.
Our Methodology
This list comprises growth stocks that Rajiv Jain’s GQG Partners held during the first quarter of 2023. By growth stocks we mean companies operating in growth-oriented industries such as tech, electric vehicles, fintech, ecommerce, biotech and healthcare, and renewable energy. The list is ranked in ascending order based on the percentage of stake held by the hedge fund. We have also mentioned the hedge fund sentiment around the securities as of Q1 2023.
12 Best Growth Stocks to Buy and Hold in 2023 According to Billionaire Rajiv Jain
Best Growth Stocks to Buy and Hold in 2023 According to Billionaire Rajiv Jain
Adobe Inc. (NASDAQ:ADBE) functions as a diversified software firm on a global scale. Its operations are divided into three segments - Digital Media, Digital Experience, and Publishing and Advertising. In Q1 2023, Rajiv Jain added Adobe Inc. (NASDAQ:ADBE) to his portfolio by purchasing 1.4 million shares of the company worth $557 million. It is one of the top growth stocks in the billionaire's portfolio.
On March 28, Erste Group analyst Hans Engel raised the rating on Adobe Inc. (NASDAQ:ADBE) from Hold to Buy. Adobe Inc. (NASDAQ:ADBE) has provided a positive outlook for revenue and profit growth in the current fiscal year. Despite having higher return on equity and operating margin compared to its peers, the stock is valued at a significantly lower level than the average of its peer group, according to the analyst's assessment.
According to Insider Monkey's first quarter database, 99 hedge funds were bullish on Adobe Inc. (NASDAQ:ADBE), and Ken Griffin's Citadel Investment Group held the largest stake in the company.
Polen Focus Growth Strategy made the following comment about Adobe Inc. (NASDAQ:ADBE) in its Q1 2023 investor letter:
“One area we are watching regarding Alphabet and Adobe Inc. (NASDAQ:ADBE) is AI systems and their capabilities, including generative AI. Interestingly, both Adobe and Alphabet could see benefits or threats from the emergence of generative AI and large language models (LLMs). Both companies already use generative AI to the benefit of their users in anticipating how content creators edit their work (Adobe) and in how search results are anticipated and generated (Google). At the same time, breakthrough technologies like AI can open the door to additional competition and/or impact a company’s profitability levels. We now see AI systems others are developing, including LLMs and generative AI offerings, that could be more competitive in the future. While we think it remains early days for ChatGPT and the capabilities of these types of LLMs and generative AI programs like DALL-E, the technology seems to be progressing at a fast rate and will at least require a strong response from incumbents.
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor company worldwide. It is divided into four segments – Data Center, Client, Gaming, and Embedded segments. In Q1 2023, Rajiv Jain strengthened his hold on Advanced Micro Devices, Inc. (NASDAQ:AMD) by a whopping 98931%. He had 6.40 million shares of the company worth $627.3 million in his 13F portfolio.
On May 3, Truist analyst William Stein raised the firm's price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $84 from $79 but kept a Hold rating on the shares. The analyst explained that the company's Q2 guidance is not as strong and their increasing investments in AI are raising concerns for the firm. Despite this, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s consolidated revenue exceeded expectations by 60 basis points, primarily due to better-than-anticipated performance in the Gaming and Embedded segments, according to the analyst's research note.
According to Insider Monkey’s first quarter database, 91 hedge funds were bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD), compared to 97 funds in the earlier quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with a position worth $833.7 million.
In addition to NVIDIA Corporation (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG), and AstraZeneca PLC (NASDAQ:AZN), Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best growth stocks to invest in according to billionaire Rajiv Jain.
White Falcon Capital Management made the following comment about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q1 2023 investor letter:
“Last quarter we added Advanced Micro Devices, Inc. (NASDAQ:AMD) to the portfolio at 18x earnings and quickly made it into a top 5 position. At that time, Mr. Market was worried about earnings revisions for semiconductor stocks. In Q1 2023, it has been one of our best performing positions with the stock up 50%! In just three months, the market realized that Artificial Intelligence (AI) and related technologies require a lot of semiconductors. Mr. Market really is manic depressive but this volatility can give the enterprising investor just enough of a window to pick stocks with attractive risk rewards.”
ServiceNow, Inc. (NYSE:NOW) is a global provider of cloud computing solutions for enterprises. The company’s offerings encompass the organization, structuring, consolidation, management, and automation of services for businesses on a large scale. In Q1 2023, Rajiv Jain boosted his position in ServiceNow, Inc. (NYSE:NOW) a dramatic 63534%, holding 1.5 million shares worth $713.8 million. It is one of the best growth stocks to invest in according to the billionaire.
On May 18, Barclays increased the price target for ServiceNow, Inc. (NYSE:NOW) from $551 to $559 and maintained an Overweight rating on the shares. The firm suggests that investors should reconsider their perspective on ServiceNow, Inc. (NYSE:NOW) after the analyst day. During the event, the management provided a compelling explanation of how the company will capitalize on the advancements in artificial intelligence. The new long-term targets presented by the company align closely with the consensus expectations, which eliminates any negative impact on the stock, according to Barclays’ research note.
According to Insider Monkey’s first quarter database, 96 hedge funds were bullish on ServiceNow, Inc. (NYSE:NOW), compared to 97 funds in the last quarter. Christopher Lyle’s SCGE Management is a prominent stakeholder of the company.
Polen Global Growth Strategy made the following comment about ServiceNow, Inc. (NYSE:NOW) in its Q4 2022 investor letter:
“ServiceNow, Inc. (NYSE:NOW) is an $80 billion market cap business based in California. Its purpose is to make the world of work, work better for people. Getting a job done in an enterprise (what the company refers to as “workflow”) usually requires different people in various functions of an organization to work together. Often, they rely on different technology systems and inefficient manual processes to complete each step of the job before moving on to the next.
Meta Platforms, Inc. (NASDAQ:META) was a new arrival in Rajiv Jain’s GQG portfolio in Q1 2023. The billionaire acquired 3.92 million shares of Meta Platforms, Inc. (NASDAQ:META) worth $830.8 million, representing 2.17% of the total 13F portfolio. It is one of the best growth stocks to buy in 2023 according to Rajiv Jain.
On April 26, Meta Platforms, Inc. (NASDAQ:META) reported Q1 GAAP earnings per share of $2.20 and a revenue of $28.65 billion, outperforming Wall Street estimates by $0.23 and $990 million, respectively. During the first quarter of 2023, Meta's Family of Apps segment witnessed a 26% year-over-year growth in ad impressions, while the average price per ad experienced a 17% year-over-year decline. Looking ahead to the second quarter of 2023, the company anticipates total revenue to fall within the range of $29.5 billion to $32 billion, compared to the consensus estimate of $29.47 billion.
According to Insider Monkey’s first quarter database, 220 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), up from 194 funds in the earlier quarter. Boykin Curry’s Eagle Capital Management is a prominent stakeholder of the company, with 7.71 million shares worth $1.6 billion.
Artisan Value Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q1 2023 investor letter:
“Our top contributors in Q1 were Meta Platforms, Inc. (NASDAQ:META), Warner Bros Discovery (WBD) and FedEx. Following sharp declines in 2022, shares of Meta Platforms have more than doubled since their early November 2022 lows. Last year’s drawdown created a highly favorable risk-reward, which we took advantage of by adding to our position. Management has wisely, in our view, recalibrated its spending plans to focus on profitability amid a weaker advertising environment, increased TikTok competition and Apple’s privacy changes. While investors got ahead of themselves back in 2021, extrapolating pandemic growth rates into the future, Meta is still a highly successful enterprise generating over $120 billion of revenue annually on a run-rate basis and has more than $40 billion in cash on its balance sheet to help it navigate its future course. Recent usage and engagement trends for Facebook and Instagram have been positive, and Reels—Meta’s answer to TikTok—is gaining traction.”
Eli Lilly and Company (NYSE:LLY) is engaged in the discovery, development, and distribution of human pharmaceuticals worldwide. Securities filings for the first quarter of 2023 reveal that Rajiv Jain’s GQG Partners owned nearly 3 million shares of Eli Lilly and Company (NYSE:LLY) worth over $1 billion, representing 2.67% of the total holdings. The hedge fund boosted its stake in the stock by 81%.
On May 1, Eli Lilly and Company (NYSE:LLY) declared a quarterly dividend of $1.13 per share, in line with previous. The dividend is payable on June 9, to shareholders of record on May 15.
According to Insider Monkey’s first quarter database, 72 hedge funds were long Eli Lilly and Company (NYSE:LLY), compared to 76 funds in the prior quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is a significant position holder in the company.
Baron Health Care Fund made the following comment about Eli Lilly and Company (NYSE:LLY) in its Q1 2023 investor letter:
“In pharmaceuticals, our largest investment continues to be in Eli Lilly and Company (NYSE:LLY). Lilly’s new diabetes drug Mounjaro is likely to be approved for obesity in 2023. Lilly has two new obesity drugs advancing into Phase 3 trials. Lilly also has a drug in late-stage development for Alzheimer’s disease. Lilly is not facing any significant near-term patent expirations, and we think the company should be able to grow revenue and earnings at attractive rates through the end of the decade and beyond.”
Visa Inc. (NYSE:V) is one of the best growth stocks to invest in according to GQG Partners’ Rajiv Jain. In the first quarter of 2023, Jain increased his holdings in Visa Inc. (NYSE:V) by 32%. He owns 5.2 million shares of the company as of March 31, valued at $1.18 billion, which accounts for approximately 3.09% of his total 13F portfolio.
On April 25, Visa Inc. (NYSE:V) declared a $0.45 per share quarterly dividend, in line with previous. The dividend is distributable on June 1, to shareholders of record on May 12.
Barclays analyst Ramsey El-Assal on May 1 raised the firm's price target on Visa Inc. (NYSE:V) to $272 from $270 and reiterated an Overweight rating on the shares.
According to Insider Monkey’s first quarter database, 173 hedge funds were bullish on Visa Inc. (NYSE:V), compared to 177 funds in the preceding quarter. Chris Hohn’s TCI Fund Management is the biggest stakeholder of the company, with 19.3 million shares worth $4.3 billion.
Polen Global Growth Strategy made the following comment about Visa Inc. (NYSE:V) in its Q1 2023 investor letter:
“We trimmed Mastercard and Visa Inc. (NYSE:V) to equal weights of the Portfolio. Mastercard and Visa operate as a duopoly in a large and growing market. Over the last 50 years, global personal consumer expenditures (PCE) has grown 7-9% annualized. We expect 4-5% long-term PCE growth going forward. Additionally, the shift from cash to credit continues unabated, with a total credit penetration of only approximately 50% globally.3 This shift provides Visa and Mastercard with another ~4-6% of growth. When combined with PCE, this gives both companies high-single-digit to low-double[1]digit revenue growth opportunities. This growth estimate is before accounting for growth amplifiers like the acceleration of ecommerce, the shift from offline to online, and additional services. Both companies enjoy extremely strong network effects that provide strong competitive advantages.
Rajiv Jain has included Microsoft Corporation (NASDAQ:MSFT) in his portfolio consistently since the fourth quarter of 2016. In the first quarter of 2023, Jain significantly increased his investment in Microsoft, raising his stake by 643%. He now holds 4.3 million shares of the company as of March, valued at $1.24 billion, which accounts for approximately 3.25% of his overall portfolio.
On May 11, Wedbush increased its price target on Microsoft Corporation (NASDAQ:MSFT) from $325 to $340 and maintained an Outperform rating on the shares. The firm's positive stance is driven by stable cloud deal flow and the potential for monetization through artificial intelligence. Wedbush emphasized that Microsoft Corporation (NASDAQ:MSFT) is firmly listed as one of its Best Ideas.
According to Insider Monkey’s first quarter database, 289 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 259 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the biggest stakeholder of the company, with a position worth $11.3 billion.
Like NVIDIA Corporation (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG), and AstraZeneca PLC (NASDAQ:AZN), Microsoft Corporation (NASDAQ:MSFT) is one of the top growth stock picks of Rajiv Jain.
Alger Spectra Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. Microsoft’s CEO expects technology spending as a percent of Gross Domestic Product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector. The company operates through three segments: Productivity and Business Processes (Office. LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services. Azure, and Enterprise Services), and More Personal Computing (Windows Devices, Gaming, and Search). While the company reported decent fiscal second quarter results, their investment in OpenAl’s ChatGPT captured the attention of investors. contributing to positive performance. Throughout the quarter. Microsoft surprised investors with continual rollouts of new Al capabilities across the company’s portfolio (e.g., Bing, GitHub. Teams, Office 365). Furthermore, the company announced Microsoft 365 Copilot, which leverages GPT-4, a large language model, combined with the Microsoft Graph of data to provide Al virtual assistance. We believe Microsoft’s investment in OpenAl provides a first-mover advantage in the Al transformer model space. Despite challenges in the early days of Al-powered applications, the pace of Al innovation is faster than any other enterprise technology previously observed, in our view.”
