Pinebridge Is Loading Up On Indian Stocks As Adani-Hindenburg Saga Brings Fresh Opportunity

PineBridge Investments said recent allegations against billionaire Gautam Adani's conglomerate wouldn't derail a growth and manufacturing boom in India.

What Happened: Michael Kelly, who oversees Pinebridge's $17.8-billion global multi-asset portfolios, is using the recent stock rout in the Indian markets to buy stocks for its multi-asset portfolios.

Kelly said the stock meltdown after Hindenburg Research's Jan. 24 report offered an entry point into what's historically an expensive market. "We are not necessarily done,” Kelly told Bloomberg, adding that his funds were not in the Indian market before the recent rout in Adani securities.

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"If you shine a spotlight, you will find things,” said Kelly. "You can never say there is only one cockroach. In the U.S., there was Worldcom and then another cockroach called Enron.”

"Having said that, if you shine a light on India, you will also see a lot of good companies.”

Kelly also does not rule out the risk of more shocks for Indian markets as the corporate governance scrutiny increases.

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