Cashing in on crisis prospect in Adani Group

Mumbai: There is an old saying that ‘Love is blind’. However, there are a few investors, who feel that ‘Trust is blind’. It simply means that if you keep on investing in a company whose shares were going for a toss. It had exactly happened in the case of Adani group when it was passing through testing times post Hindenburg report in January 2023.

Not to mention that the short seller’s attack on the conglomerate had raised bigger, darker questions about India’s credibility as a destination for global investors. In fact, Adani’s more than $100 billion crisis had shaken investors’ faith globally.

The two investors who had been investing in the Adani group immediately after the Hindenburg report was made public, include GQG and Davidson Kampner.

To elaborate it, at a time when the entire world was busy dumping their securities in the group, these two companies had invested huge sum of money into it.

And the result was astonishing. At the end of nearly one year, these investors have either doubled their notional profit from their investment into the group, or have already made gains in astronomical proportions.

Talking to Bizz Buzz, an expert from the financial market, said on the condition of anonymity, “As being hedge funds, both the firms hedged their bets very well, while putting their money in Adani holding companies during their testing times. Hedge Funds’ job is to take risky bets when nobody wants to put their money into it. In fact, GQG Partners exactly did that. And now they are sitting on almost 100 per cent returns from the investment they had made a year back.”

The investment firm, Davidson Kampner, spent around $500 million on the notes of companies including Adani Green Energy. immediately after Hindenburg published its report in January last year. Result? The firm booked profit of up to 70 per cent on Adani Bonds.