The sovereign wealth fund of Saudi Arabia significantly reduced its reported holdings of American equities. The Public Investment Fund, headquartered in Riyadh, disclosed a notable decrease in its direct ownership of U.S.-traded stocks by approximately fifty percent by the close of the first quarter.
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As per the analysis derived from a Form 13F submitted to the U.S. Securities and Exchange Commission on May 15, the market value of the U.S. stocks held by the fund amounted to approximately $18 billion by March 31, a stark decline from the $35 billion recorded at the conclusion of the previous year.
Notably absent from the fund's portfolio are various technology stocks, including substantial investments in Amazon.com, Microsoft, and Salesforce, each valued at $600 million or more. Instead of maintaining direct stakes in these tech giants, the wealth fund opted for call options on a reduced number of shares, a strategic move aimed at preserving exposure to these companies while mitigating capital risk.
Furthermore, the disclosed report indicates a complete divestment from U.S. financial and travel entities previously held by the fund at the year's end. Notable absences include a $602 million stake in BlackRock, a $942 million investment in Carnival, and a $757 million position in Booking Holdings.
Funding for the Public Investment Fund is sourced from a combination of borrowing, liquid assets, and asset transfers from the government, in addition to profits accrued from its investment activities. Sovereign wealth funds and other institutional investors managing portfolios exceeding $100 million in U.S.-traded equities are obligated to disclose their holdings quarterly via Form 13F filings.
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