GQG sale of Adani Energy shares said to disrupt hedge fund bets
GQG Partners’ Adani Energy Solutions stake sale added unexpected supply during MSCI’s rebalancing auction, overwhelming passive-fund demand and contributing to a 10% stock decline. Hedge funds positioned for index-driven buying were also affected. About $569 million of shares changed hands, while GQG’s stake had fallen to 3.46% by August-end.
On Monday, GQG Partners Inc. sold a significant number of Adani Energy Solutions Ltd. shares during India's closing auction, causing a 10% drop in the stock's price that day, according to people familiar with the situation. This unexpected supply overwhelmed demand from passive funds, contributing to the sharp decline. Hedge funds, who often build positions ahead of index changes and sell into the expected demand from passive investors, were also impacted.
The increased supply, along with the positions built by hedge funds, led to the steepest slump in Adani Energy shares in about seven months. The sale by GQG added around $569 million of shares to the market, disrupting the anticipated trades.
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