Goldman Funds Reduce Stakes In Adani From Active ESG Portfolios

The investment arm of Goldman Sachs Group Inc. dramatically reduced its exposure to the Adani Group in its ESG portfolios in the weeks following allegations of fraud against the conglomerate by short-seller Hindenburg Research, reported Bloomberg.

Goldman funds registered as promoting environmental, social and governance goals under European Union rules sold about 11.7 million shares in Adani companies in February, as per the data compiled by Bloomberg. Following the retreat, Goldman Sachs Asset Management's actively managed ESG fund exposure to Adani was limited to a stake of roughly 400,000 shares in Ambuja Cements Ltd., the data show.

Other asset managers cutting Adani from ESG funds include Northern Trust Corp. and Storebrand ASA, according to Bloomberg data, which doesn't include exchange-traded funds and is based on an analysis of the latest available filings. In all, 13 actively managed ESG funds scaled back their holdings in the conglomerate, selling a total of 12 million Adani Group shares, with Goldman accounting for the largest sales in the Bloomberg data.

Goldman Sachs yet to respond on the development. Northern Trust and Storebrand too yet to respond on this latest development.

Meanwhile, Adani companies are trying to tap markets in what would mark an important milestone for the group after Hindenburg Research published its Jan. 24 report alleging the conglomerate was guilty of market manipulation and fraud. Adani, which saw the market value of its empire shrink by more than Rs 8.24 lakh crore $100 billion after the Hindenburg report was published, has repeatedly refuted the claims made by the short seller and is now trying to rebuild relations with financial markets, according to the Bloomberg report.