Monday 14 December 2020

Exclusive- #AbuDhabi's Mubadala reviews equities fund in investment shake-up - sources | Reuters

Exclusive-Abu Dhabi's Mubadala reviews equities fund in investment shake-up - sources | Reuters

Abu Dhabi state investor Mubadala is considering options including the spin-out of an internally managed $500 million public equities fund after a weak performance, two sources said, as the emirate shakes up state entities amid lower oil prices.

Mubadala Investment Co, which manages more than $230 billion in assets, plans to take a decision on what to do with its long-short public equities fund, part of investment arm Mubadala Capital, by early next year, the sources said.

One of the sources said the fund - which is down to around $500 million in assets under management from a peak of $1 billion - could be either spun out or unwound.

Long-short equity hedge funds, which bet on stock prices rising and falling, tend to protect investors from volatility by “shorting” -- borrowing a stock or security from an institutional investor, then selling it back when the price falls and pocketing the difference.

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