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Saudi Sovereign Fund Buys Big Stake in Tesla

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Saudi Arabia’s Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, purchased a large stake in Tesla, Inc. (formerly Tesla Motors). PIF acquired a 3% to 5% stake in the electric auto manufacturer. The exact date and time of the share purchases are unknown to the public. According to current share price figures of Tesla, the stake is worth around US$ 1.7 billion and US$ 3.2 billion. Initially, PIF approached Tesla in 2017 to take Tesla private. PIF then asked for newly-issued shares of Tesla. These shares were acquired on the secondary market, after Elon Musk turned down the issuing of new shares of Tesla. JPMorgan helped PIF acquire the shares in the secondary market.

Elon Musk also tweeted about taking Tesla private. At US$ 420 per share, at least US$ 70 billion would be needed to take the company private. However, far less could be needed if the current investor would roll up their equity into the private vehicle.

Hedge funds manage money from a wide number of capital sources including foundations, family offices, public pensions and sovereign wealth funds. A number of prominent hedge funds have taken short positions against Tesla. Hedge fund Greenlight Capital, managed by David Einhorn, has taken losses trying to short Tesla stock. Greenlight Capital started shorting Tesla a couple of years ago. Einhorn even ended his Model S lease, opting for an electric Jaguar car (Jaguar I-PACE). In August, Einforn revealed to his investors that the Greenlight Capital Fund was down 18.3% in the first half of the year. Einhorn in his investor letter called Musk “erratic and desperate.”

Another Tesla short investor in Jim Chanos of Kynikos Associates. The Alaska Permanent Fund is an investor in a Kynikos fund.

Norway GPFG Would Prioritize Value in Tesla Stake

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Sovereign wealth fund giant Norway Government Pension Fund Global (GPFG) is an investor in Tesla, holding a 0.48% stake at the end of 2017. GPFG owns roughly 1.4% of all globally listed company shares, minus stocks from its exclusion pool. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Anbang Insurance Set to Sell its US Luxury Portfolio

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Distressed Beijing-based holding company Anbang Insurance Group is set to sell its U.S. luxury hotel properties, which were purchased for US$ 5.5 billion from the Blackstone Group in 2016. This is a move to raise quick cash, following the firm’s seizure at the hands of the Chinese government six months ago. Bids had already been ongoing for selected properties, including the famed Essex House Hotel, overlooking Manhattan’s Central Park. The portfolio of hotels is strategically placed in geographically diverse regions, including Miami and Chicago. Anbang is looking to cash in on the properties quickly, as its properties in China are already being liquidated. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Norway GPFG Returns 1.8% for Second Quarter of 2018

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Norway’s Government Pension Fund Global (GPFG) returned 1.8% for the second quarter of 2018. Listed equity investments generated a 2.7% return for the period, while fixed income returned 0%. Unlisted real estate investments posted a 1.9% return for the second quarter. In addition, the Norwegian krone depreciated against the U.S. dollar during the quarter. Furthermore, 2 billion NOK was withdrawn from the fund.

“North American and European stocks had a positive development in the quarter despite the prospect of increased trade barriers. This made a positive contribution to the fund’s return,” says Trond Grande, Deputy CEO of Norges Bank Investment Management, according to the press release.

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