- Rajiv Jain made a big bet on Gautam Adani's business empire last month.
- He told Bloomberg Monday that he believes his $1.9 billion investment could deliver 100% returns over the next five years.
Investing in Gautam Adani's companies could generate massive returns over the next five years, according to an emerging markets specialist who made a big bet on the Indian tycoon's troubled business empire last month.
Rajiv Jain poured $1.9 billion into four of the Adani Group's ten listed companies last month – and said Monday that he thinks the value of his investment could double over the next half-decade.
"These could be multibaggers," the GQG Partners CIO told $4, referring to stocks that deliver returns of 100% or more.
Adani has lost as much as $153 billion worth of market capitalization since short-seller Hindenburg Research $4 in January that alleged the conglomerate had engaged in stock manipulation and accounting fraud to perpetrate what it called "$4", according to data from Bloomberg.
The Indian conglomerate has repeatedly dismissed Hindenburg's report, saying it includes "$4".
Jain agreed with those denials and is betting that Adani's coal-mining assets, data centers, and majority stake in Mumbai's international airport will deliver returns for GQG.
"If you peel the onion a little bit further, we didn't find any signs of fraud or anything like that," Jain told $4 in an interview that aired Monday.
"If you look at the longer-term opportunities that these companies have, it's tremendous," he added. "These are very well run assets, unique assets, monopolistic assets."
"And obviously, there was a little bit of crisis and we believe that that creates a massive, longer-term headroom for these businesses and opportunity for us."
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