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InvestmentsSaudi PIF nearly triples U.S. stock holdings; adds Walmart, Pinterest By Reuters

Saudi PIF nearly triples U.S. stock holdings; adds Walmart, Pinterest By Reuters

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© Reuters. FILE PHOTO: The firm signal of Alibaba Group Holding Ltd is seen outdoors its Beijing headquarters in China June 29, 2019. REUTERS/Stringer

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By Saeed Azhar

DUBAI (Reuters) -The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, nearly tripled its holdings of U.S.-listed shares to $43.45 billion within the third quarter, including shares of Alibaba (NYSE:) Group, Walmart (NYSE:) and Pinterest (NYSE:).

Its U.S.-listed stock holdings within the quarter ended Sept. 30 elevated from nearly $16 billion within the prior quarter, in keeping with a U.S. Securities and Exchange Commission submitting.

Other shares it purchased included Just Eat Takeaway.com and Ballard Power Systems (NASDAQ:).

The PIF, which manages $430 billion in property, is on the centre of Saudi Arabia’s plans to rework the economic system by creating new sectors and diversifying revenues away from oil.

The PIF additionally owns a 62.72% stake in electrical automobile firm Lucid, which has a market worth of about $71 billion, a big increase in worth from the tip of September.

“The Q3 figure is indeed significantly larger than Q2, but most of the increase is due to Lucid Motors’ IPO in July,” mentioned Diego Lopez, managing director at Global SWF, an trade knowledge specialist.

“If you isolate the effect of Lucid, the U.S. equity holdings increased only 11%, from $15.9 billion to $17.7 billon.”

Lucid’s itemizing in July was an enormous dividend for the Saudi sovereign wealth fund, which invested greater than $1 billion within the firm in 2018 for a considerable stake and invested extra in February. The PIF additionally owns a 3.75% stake in ride-sharing firm Uber Technologies (NYSE:).

The PIF is pursuing a two-pronged technique, constructing a world portfolio of investments whereas additionally investing domestically in initiatives that may assist scale back Saudi Arabia’s reliance on oil.

“While PIF’s strategy in 2020 seemed to be focused on short-term gains, we’ve seen a change in 2021, with only one divestment so far,” Lopez mentioned, including that the main focus is transferring in direction of non-public partnerships.

PIF has additionally invested $45 billion in Softbank (OTC:)’s inaugural $100 billion expertise fund.

The PIF has boosted its firepower from a number of funding sources lately, together with loans and a $40 billion switch from central financial institution reserves final yr.

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