Saudi wealth fund boosts U.S. holdings with stakes in Citi, Boeing, Facebook
Public Investment Fund taking advantage of coronavirus market weakness
DUBAI/BENGALURU - Saudi Arabia’s sovereign wealth fund has bought minority stakes in major American companies including Boeing (BA.N), Facebook (FB.O) and Citigroup (C.N), a regulatory filing showed, giving it a portfolio of nearly $10 billion in U.S.-listed stocks.
The $300 billion Public Investment Fund (PIF) has been buying minority stakes in companies across the world, taking advantage of market weakness in the wake of the coronavirus outbreak.
A Boeing 737 MAX (Associated Press)
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The PIF disclosed stakes worth $713.7 million in Boeing, about $522 million in Citigroup, $522 million in Facebook, $495.8 million in Disney (DIS.N) and $487.6 million in Bank of America (BAC.N), the U.S. Securities and Exchange Commission (SEC) filing on Friday showed.
The PIF has a nearly $514 million stake in Marriott (MAR.O) and a small holding in Berkshire Hathaway (BRKa.N), according to the filing. The PIF also disclosed an $827.7 million stake in oil company BP (BP.L), which has American Depository Receipts (ADRs) listed in the United States.
Two men stand outside the Marriott Marquis hotel in Washington. (AP Photo/Andrew Harnik, File)
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“The Saudi sovereign fund went shopping in Q1,” tweeted Ali Al-Salim, co-founder of Dubai-based consulting firm Arkan Partners, adding that it now held about $10 billion in U.S.-listed equities, up from $2 billion at the start of the year.
PIF’s strategy is two-pronged; building an international portfolio of investments and investing locally in projects that will help reduce Saudi Arabia’s reliance on oil.
The sovereign wealth fund was not immediately available to comment.
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The PIF has separately funded almost half of Japanese investor SoftBank’s $100 billion Vision Fund, which has been hit by losses on technology bets.
Last month the PFI’s head, Yasir al-Rumayyan, said it was looking into investment opportunities in areas such as aviation, oil and gas, and entertainment, adding that there would be a lot of potential for investment opportunities once the coronavirus crisis passes.
The PIF disclosed an 8.2% stake in coronavirus-hit Carnival Corp (CCL.N) in April, sending the cruise operator’s shares nearly 30% higher.
View from onboard Carnival Liberty as the Carnival Victory cruise ship departs the Grand Turk Cruise Terminal in the Turks and Caicos Islands. (iStock)
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The Saudi fund bought stakes in Royal Dutch Shell (RDSa.L), Total (TOTF.PA), Eni (ENI.MI) and Equinor (EQNR.OL) earlier this year, a source familiar with the transactions told Reuters on April 9.
The SEC filing on Friday showed it had a $483.6 million stake in Shell, a $222.3 million holding in Total and a $481 million stake in Suncor Energy (SU.TO).
Shell's company logo is pictured at a gas station. (REUTERS/Arnd Wiegmann)
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An earlier filing in Norway had shown the PIF had a 0.3% stake in oil and gas firm Equinor.
PIF already has a $2 billion stake in Uber Technologies (UBER.N) and electric car company Lucid Motors. It used to own a small stake in electric carmaker Tesla (TSLA.O), but the latest filing did not show any exposure.