Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), doubled down on its investments in video game makers and Canada’s top oil producer. As part of diversifying its revenues away from oil, Saudi Arabia’s Public Investment Fund is shaking up its portfolio of investments as it increased its holding of U.S. stocks to about $15.4 billion.
The US$400 billion fund has brought down its investment in video game makers such as Activision Blizzard Inc., Electronic Arts Inc., and Take-Two Interactive Software Inc. from $6 billion in the first quarter to $3.3 billion at the end of the fourth quarter. At the same time, the fund sold its 51 million shares in Suncor Energy Inc., Canada’s top integrated oil producer.
While the PIF doubled down on some investments, it added bets on other sectors. The wealth fund added the South Korean e-commerce giant “Coupang Inc.” to its portfolio by buying $141 million worth of stock. Last quarter, the PIF bet on Compute Health Acquisition Corp., a company set up by Intel Corp.’s chairman Omar Ishrak, by buying 8.7 percent stake for $75.7 million.
As part of Saudi Arabia’s vow to transform the economy, the PIF wants to make sure that 80% of investments are local investments. It is expected to inject at least $40 billion annually into the economy until 2025 while increasing its assets to $1 trillion by that date.
References:
1) Barbuscia, D. (2021, May 17). Saudi sovereign fund PIF dissolves share stake in Suncor Energy. The Globe and Mail. https://www.theglobeandmail.com/investing/investment-ideas/article-saudi-sovereign-fund-pif-dissolves-share-stake-in-suncor-energy/.
2) News, B. (2021, May 18). Saudi Arabia dumps stake in Canada's Suncor, all 51 million shares. financialpost. https://financialpost.com/commodities/energy/oil-gas/saudi-wealth-fund-loads-up-on-video-game-makers-and-exits-suncor.
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