Saudi sovereign fund shores up stakes in US holdings as pandemic belabours

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Saudi sovereign fund shores up stakes in US holdings as pandemic belabours

On Friday, the 15th of May 2020, a US SEC (Securities and Exchange Commission) regulatory filing had revealed that the Kingdom of Saudi Arabia’s sovereign wealth fund, often called as the Saudi PIF or Public Investment Fund, had been purchasing minority stakes in a gauge of major American companies ranging from tech conglomerates to financials to aerospace giants over the recent past, offering the PIF a portfolio of roughly $10 billion in US holdings.

On top of that, followed by the reveal of Friday’s (May 15th) regulatory filing, a number of analysts from investment funds across the globe were quoted saying that the Saudi’s $300 billion public investment fund, had started off taking minority stakes in major companies across the globe including some SoftBank-backed e-vehicle firms, seemingly unusual for an economy utterly dependent on fossil fuel, in recent pasts, as the PIF appeared to be taking advantage of a broad-based sell-off wave amid an apparently recessed global economy.

Besides, according to the US SEC regulatory filing released on Friday (May 15th), the Kingdom’s PIF had unfurled stakes worth of $514 million in Warren Buffet’s Berkshire Hathaway, $827.7 million in British oil giant BP Plc.’s NYSE-listed stocks, $713.7 million in the world’s second-largest aerospace giant Boeing Co., $522 million in Facebook Inc., and $487.6 million in the Bank of America Merrill Lynch.

Meanwhile, citing the Saudi PIF’s strategy was aimed at reducing the nation’s dependency on fossil fuels alongside creating a well-crafted international investment portfolio, the Mideast Kingdom’s sovereign wealth fund said in a statement on Friday (May 15th), “PIF is a patient investor with a long-term horizon.

As such, we actively seek strategic opportunities both in Saudi Arabia and globally that have strong potential to generate significant long-term returns while further benefiting the people of Saudi Arabia and driving the country’s economic growth.

These opportunities include sectors and companies that are well positioned to drive economies and lead sectors moving forward.