Adani stock: U.S. asset manager’s $2 billion buying spree after short report
It’s been revealed U.S. asset management giant, GQG Partners has purchased almost $2 billion worth of Adani stock following the explosive Hindenburg Research short report which accused the Group of the “largest con in corporate history”.
That short report caused a brutal sell-off in numerous Adani-linked companies listed on Indian exchanges. Around $144 billion in combined market value has been wiped from the Group’s value since the report was published.
However, GQG has pounced, buying into four Adani Group companies amid the bloodbath.
Via blocktrades in recent days, GQG has invested a total of $1.9 billion into the following listed Adani Group companies:
- Adani Ports (NSE: ADANIPORTS)
- Adani Green Energy (NSE: ADANIGREEN)
- Adani Transmission (NSE: ADANITRANS)
- Adani Enterprises (NSE: ADANIENT)
The seller on the other end of the block trades was the Adani family, via the Adani family trust.
“They (Hindenburg Research) have their view, and we have our view, and we happen to disagree with their view, but that’s what makes a market,” GQG founder Rajiv Jain told The Australian Financial Review.
The GQG Partners Emerging Markets mutual fund has returned 6.77% per annum since its inception in 2016.
According to GQG, “the Fund seeks to invest in high-quality companies with attractively priced future growth prospects in emerging markets. GQG Partners’ fundamental investment process evaluates each business based on financial strength, sustainability of earnings growth, and quality of management.”