Saudi wealth fund boosts U.S. holdings with stakes in Citi, Boeing, Facebook
Saudi Arabia's sovereign wealth fund has bought minority stakes in major American companies, including Boeing, Facebook and Citigroup, a regulatory filing showed, giving it a portfolio of nearly 10 billion U.S. dollars in U.S.-listed stocks.
The 300-billion-U.S.-dollar 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.
The PIF disclosed stakes worth 713.7 million U.S. dollars in Boeing, about 522 million U.S. dollars in Citigroup, 522 million U.S. dollars in Facebook, 495.8 million U.S. dollars in Disney and 487.6 million U.S. dollars in Bank of America, the U.S. Securities and Exchange Commission (SEC) filing showed on Friday.
The PIF has a stake of nearly 514 million U.S. dollars in Marriott and a small holding in Berkshire Hathaway, according to the filing. The PIF also disclosed a stake of 827.7 million U.S. dollars in oil company BP, which has American Depository Receipts (ADRs) listed in the United States.
"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 U.S. dollars in U.S.-listed equities, up from two billion U.S. dollars 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.
"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," the sovereign wealth fund said in a statement.
"These opportunities include sectors and companies that are well positioned to drive economies and lead sectors moving forward."
(Cover: A view of Riyadh city after the Saudi government eased curfew following the outbreak of COVID-19, Riyadh, Saudi Arabia, May 7, 2020. /Reuters)