Saudi Arabia’s sovereign wealth fund invested heavily in one of the stocks tied to the Archegos Capital Management blowup, while maintaining its biggest holdings of other U.S.-listed equities last quarter.
The Public Investment Fund owned $110.8 million in Farfetch Ltd. shares at the end of December, representing a 1% stake in the London-based luxury online retail platform after boosting its holding by nearly 1,000%, according to regulatory filings on Monday.
Farfetch’s stock was involved in a spree of block trades after Archegos failed to meet margin calls last March. Philippe Laffont’s investment firm Coatue Management was among firms that capitalized on the distressed remains of Bill Hwang’s hedge fund by taking a $148 million stake in Farfetch, which it exited in the second quarter last year.
Following the forced liquidation of positions linked to Archegos, Farfetch’s stock tumbled and is now down 74% from a record high reached a year ago. The shares are still trading above their lows reached in 2020. Analysts’ price targets forecast a 125% return potential for the stock over the next 12 months, according to data compiled by Bloomberg.
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