White Kight GQG

Australian-listed boutique investment firm steadfast on Adani Group companies, says level of exposure manageable

By Nasrin Sultana

Published: Dec 6, 2024 06:18:42 PM IST

Updated: Dec 6, 2024 06:38:59 PM IST

Australian-listed boutique investment firm GQG Partners has remained unshaken in the Adani Group companies. Image: Punit Paranjpe / AFP

The confidence of Australian-listed boutique investment firm GQG Partners has remained unshaken in the Adani Group companies. “We believe this level of exposure is manageable, even given the volatility in Adani Group stocks,” GQG Partners says in a statement.

It adds that actions and investigations typically take years to resolve and may yield reduced penalties or fines. In the past, many global companies and their executives who have faced significant government action, including FCPA violations, continued to operate in the interim, looking to improve their business practices, says GQG.

According to GQG, the indictment is happening during a period of transition for the US federal government, which means the case will likely continue under a new Justice Department, appointed by the Donald Trump administration.

“We recognise the distinction of the allegations of the individuals vs the companies. We believe the fundamentals of the companies we are invested in remain sound. As we do with other holdings, our team continues to do research and reassess the situation but, as of now, we have not changed our view on the prospects for these investments. That may change as new information becomes available,” it says.

Soon after trouble triggered by Hindenburg allegations, GQG initiated positions in five of listed Adani group companies in March 2023. As of November 19, (the day before the indictments), GQG had a total exposure of $9.7 billion to the Adani Group companies, on a total asset base of $158.6 billion, representing roughly 6.1 percent of their total assets.