Risk Alert: Clarification on Adani Stocks

What’s going on with Adani Stocks?

• Hindenburg Research published a comprehensive report on 25th January, 2023 alleging potential business malpractices that have been going within several companies under the Adani Group’s portfolio.
• This report has specifically pointed out several key points namely, how the Adani’s debt holding has been ridiculously high, its attempt at “brazed stock market manipulation” and a lot more.
• This has caused an erosion of around 12–20% on average across Adani Companies’ share prices on the market opening on 27th January, 2023

Should I be worried? Do my funds have exposure to any Adani stocks?

• We are glad to inform you as as a valued investor portfolio with Cambridge Wealth, none of our portfolios have any kind meaningful exposure to Adani stocks, which means there is currently no market risk to our funds.
• By sticking to our philosophy of avoiding the risk of permanent loss of capital, our research model systemically avoids any exposure to a permanent loss of capital situation like the Adani group
• Our research models had already triggered & identified in 2019, (three years in advance) the following issues High debt, governance issues, creative accounting, suspicious FPI transactions.
• We therefore only worked with fund managers who share this view and have avoided large exposures to these stocks — even when they were giving hefty short term returns to the tune of 100%
• As also mentioned in our earlier conversations, our research process accounts for qualitative metrics like Fund house integrity and Fund Manager track records which have helped avoid this and will continue to do so.

What’s next?

• As far as your investments with Cambridge Wealth are concerned, there is no action needed at this point of time.
• If you have any other holdings that need an expert view on a similar situation, to assess whether any of your funds hold any such stocks, kindly share your Mutual Funds/CAS/NSDL statements at support@cambridgewealth.in and we shall get back in touch with you very shortly/

We shall be happy to answer any other queries that you may have with regards to the same!