#Qatar Fund to Reposition $450 Billion Portfolio Amid Turmoil - Bloomberg

Qatar Fund to Reposition $450 Billion Portfolio Amid Turmoil - Bloomberg

Qatar’s sovereign wealth fund will use the current economic turmoil as an opportunity to rebalance its $450 billion portfolio, according to its boss.

The Qatar Investment Authority is looking for opportunities in Europe, Asia and the US in sectors such as venture capital, fintech and sports, Chief Executive Officer Mansoor Al Mahmoud said in a Bloomberg Television interview at Davos on Monday. The World Economic Forum returns to the resort during the winter for the first time in three years this week.

“It’s a challenging time. Inflation is the main topic for the global economy,” he said. “We see this as an opportunity to reposition our portfolio. We highlight the weaknesses we have in our portfolio and we wait for these sort of corrections in the market to fulfill the weaknesses we have.”

Sovereign wealth funds from the oil-rich Gulf region continued to be active acquirers last year even as global deal volumes fall and banks cut bank lending for acquisitions. The QIA in October agreed to invest €2.4 billion ($2.5 billion) in RWE AG to back the German utility’s purchase of US renewable assets. It was also a cornerstone investor in sports car brand Porsche AG’s IPO and has invested in a string of tech startups.

Known for its penchant for trophy assets, the QIA backed lenders such as Barclays Plc and Credit Suisse Group AG during the 2008 financial crisis. While a more recent focus on closely-held tech companies has taken it to growth markets, soaring energy prices are adding extra fuel to its return to big-ticket deals.