Abu Dhabi Royal Sheikh Tahnoon's Firm Shorts US Stocks on Global Recession Fears - Bloomberg
An investment firm controlled by a top Abu Dhabi royal has built a short position worth billions of dollars in US stocks, people familiar with the matter said, in a bet that growing fears over a recession will pressure markets.
Royal Group turned more negative on equities at the start of the year and has shifted more of its portfolio into short-term US Treasuries, the people said, asking not to be identified because the matter is private. The firm, chaired by United Arab Emirates National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, is also investing more in commodities and crypto, they said.
The conglomerate, which helps to manage one of the world’s biggest family fortunes through a vast network of subsidiaries, planned to plow as much as $10 billion into US and European stocks and other assets hammered by fears of a global slowdown, Bloomberg reported in October.
The company took profits on some of its investments in US markets late last year and has been revising its buy list of stocks there, the people said. The group will look to boost its exposure to the US once valuations improve and the Federal Reserve signals it’s gearing up to cut interest rate cuts, they said.
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