(Bloomberg) -- Fresh troubles at the Adani Group are posing a threat to US-based GQG Partners LLC, which took a contrarian bet on the conglomerate after a short-seller attack last year.

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US prosecutors’ bribery charges against billionaire Gautam Adani and his executives saw the group’s stocks tumble Thursday. GQG Partners, whose investment in the group has ballooned to $10 billion, said it is monitoring the charges.

Flagship Adani Enterprises Ltd. slumped as much as 23% following allegations that founder Gautam Adani drove a $250 million plot to bribe Indian government officials for solar energy contracts. The conglomerate’s several dollar notes listed overseas saw heavy losses, while a unit of the group scrapped a $600 million bond.

While GQG, run by emerging market investor Rajiv Jain, said more than 90% of its client assets are invested in issuers unrelated to the Adani Group, the investment firm’s depository receipts listed in Sydney slumped by a record 19%.

Star stock picker Jain has been the most vocal backer of Adani ever since it came under pressure following Hindenburg Research’s bombshell report in January 2023 that alleged the billionaire was running the world’s largest “corporate con”. Adani has repeatedly denied the claims.

GQG backed Adani in the months following the short-seller report that wiped out more than $150 billion in market value for the group at one point. Since then the Adani Group’s market value soared to nearly recoup all the Hindenburg-related losses, making Jain’s investment appear prescient.

Just about a month ago, GQG expressed optimism for its bet on Adani, with portfolio manager Brian Kersmanc telling Bloomberg Television that he is “very excited for the continued headroom for growth” in the conglomerate.

GQG, through its various funds, holds stake in most major Adani Group companies. In the flagship Adani Enterprises, GQG had a 3.52% stake, according to latest regulatory filings. The investment firm also holds shares in other key group companies including Adani Ports and Special Economic Zone Ltd. and Adani Power Ltd.

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