#Saudi wealth fund cut U.S. stocks by $3 billion last quarter, reduced ETFs | Reuters

Saudi wealth fund cut U.S. stocks by $3 billion last quarter, reduced ETFs | Reuters

Saudi Arabia's sovereign wealth fund cut its exposure to North American equities by $3 billion in the third quarter, offloading some exchange traded funds (ETF) and stocks including Berkshire Hathaway BRKa.N, a regulatory filing showed.

The Public Investment Fund (PIF) was holding $7.05 billion worth of U.S. equities as of Sept. 30, compared with nearly $10.12 billion in the second quarter, the filing showed late on Monday. The fund cut its holdings of ETFs to $1.96 billion by Sept. 30, from nearly $4.7 billion in the second quarter.

In recent months, the sovereign wealth fund had bulked up minority stakes in companies worldwide, including oil companies, taking advantage of market weakness caused by the COVID-19 pandemic.

In the previous quarter, it moved part of those investments into real estate, materials and utilities ETFs. In the third quarter, it was holding only the utilities ETF.

“In terms of strategy, there has always been a sense that PIF is trying to play catch-up with regional peers, but wants to fast-track the kind of returns that investments by sovereign funds of Abu Dhabi or Kuwait and even Qatar have generated over many years,” said Rachna Uppal, director of research at Azure Strategy, a Middle East-focused consultancy.