Rajeev Jain’s firm oversees over $90 billion.
GQG Partners Inc. Rajeev Jain, chief investment officer of Adani Group, who last month bought Adani Group shares worth nearly $2 billion, sees a bet on the Indian conglomerate to deliver more than 100% returns.
“These could be multibaggers,” Mr Jain said in an interview at Bloomberg’s New York headquarters. The term comes from a book by mutual fund manager Peter Lynch and describes an investment that can at least double.
Mr. Jain developed Fort Lauderdale, Florida-based GQG by going against the tide of “comfort investing” — making decisions by committee rather than taking risks on undervalued public stocks.
His firm oversees over $90 billion. Its most high-profile bet this year was backing billionaire Gautam Adani by acquiring shares in four of his firms from a family trust after a short-seller attack wiped out $153 billion in market value.
A January 24 report by Hindenburg Research said Mr. Adani was “perpetrating the biggest fraud in corporate history.” The report, Mr Jain said, is like a “10-year-old newspaper”.
One of Hindenburg’s allegations is that by using a labyrinth of offshore accounts linked to the family, the group circumvented the Securities and Exchange Board of India’s requirement that public shareholders hold at least 25% of the stock. Mr. Adani has denied the claims.
“One of the issues raised was that he owns over 75% of the company, right? And I ask you in real simple English, is this fraud?” Mr. Jain said. “Is it not disclosed properly? Yes, it is some of them, you can argue that, but is it fraud?”
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