Saudi Wealth Fund PIF Halves US Equity Holdings in Major Sell-Off

KSA, 17 May, 2024 :  Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), significantly reduced its US stock holdings by the end of the first quarter. The PIF's US-traded stock portfolio dropped to approximately $18 billion as of March 31, down from $35 billion at the end of the previous year, according to a Form 13F filed with the US Securities and Exchange Commission.

Notably, the PIF divested its direct stakes in major tech companies, including Amazon, Microsoft, and Salesforce, each previously valued at $600 million or more. Instead, the fund acquired call options on a smaller number of shares, maintaining some exposure to these firms with reduced capital risk.

Additionally, the PIF eliminated its stakes in various US financial and travel companies. This included a $602 million investment in BlackRock Inc., a $942 million stake in Carnival Corp., and a $757 million position in Booking Holdings Inc.

The PIF's capital is sourced from a mix of borrowing, cash, asset transfers from the government, and retained earnings from its investments. Institutional investors like sovereign wealth funds managing $100 million or more in US equities are mandated to disclose their holdings quarterly via Form 13F.

Source : www.gulfnews.com