Though GQG Partners (ASX:GQG) recorded the lowest monthly inflows in two years for November, net inflows will continue to recover strongly in December, Jarden Research said in a Dec. 10 note.

The investment firm believes the results in November's net inflow of AU$100 million, compared with the average of AU$2 billion from January to October were mainly due to the negative impact of the Adani allegations.

Jarden estimates that GQG Partners has invested around 4% to 6% of its Funds Under Management (FUM) into Adani companies, which lost 16% following accusations against the founder for involvement in a bribery scheme.

It said that net inflows deteriorated immediately after the Adani allegations were made on Nov. 20 and reached their lowest point on Nov. 22.

However, Jarden notes that the company recorded about 4% net inflows in the first two days of December.

Jarden expects net inflows to strongly recover in December as November inflows are also seasonally weak and the inflows are a reflection of the company's reputation rather than its performance.

The investment firm maintained the company's buy rating but cut its price target to AU$3.15 from AU$3.30.

Shares of GQG Partners rose almost 3% at market close.