Goldman’s clawback is small but pointy 22 Oct 2020 CEO David Solomon and others will forfeit $174 mln of bonus payments to resolve the 1MDB bribery scandal. But there’s a question mark over former COO Gary Cohn, who cashed in when he went into politics in 2017. That career change shouldn't shield anyone from past sins.
Corona Capital: Kazakhs, Norwegians, Airlines 15 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: Kaspi gives ECM bankers something to smile about; Norway’s sovereign wealth fund has a so-so third quarter; and United Airlines has more bad news on jobs.
Corona Capital: Vaccine politics, Peloton 8 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Pharma firms like Merck and Pfizer are putting long-term profit first by promising to wait for full approvals for Covid-19 treatments; Peloton cycles towards more profit by cutting the price of its high-cost bikes.
Norway’s $1.1 trln fund is a bad toy for hedgies 24 Aug 2020 Nicolai Tangen’s appointment as boss of the gargantuan rainy-day fund hangs in the balance. Norwegians mostly worry about the big investor’s conflicts, but his likely approach is a larger concern. Active trading of so much money could pointlessly disrupt global markets.
Temasek MAC attack draws Singapore’s bailout line 12 Aug 2020 The sovereign fund escaped a $3 bln deal for rig-builder Keppel, citing a “material adverse change”. It avoids setting an unrealistic valuation that would complicate consolidation. Singapore’s offshore sector can get its fix without turning patient capital into reckless capital.
Corona Capital: Baseball, Gas cloud, Luxury goods 28 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Baseball’s Covid-19 cases put popular college sports competitions in jeopardy; a recovery in drilling for gas is bad news for the environment; Gucci and other luxury retailers finally embrace the digital revolution.
Corona Capital: Nursing homes, Airlines, Walgreens 9 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Nursing home investments will get a rethink; airline travelers get the upper hand; and Walgreens’ LBO heyday is in the past.
Corona Capital: Amazon, Car perks, College sports 29 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Companies are trying to bolster pocketbooks. Amazon makes extra payments to employees while car companies are offering major discounts. Plus: Under Armour ditches its UCLA deal.
Sovereign funds are having their rainy-day moment 23 Jun 2020 Temasek is stepping in to support Singapore Airlines and a marine group. It makes sense to shore up strategic assets at home when global valuations are high and cash is on hand. Peers from Abu Dhabi’s Mubadala to Malaysia’s Khazanah are likely to follow.
Corona Capital: Instacart stocks up 11 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Grocery-delivery firm and lockdown beneficiary Instacart tops up on capital while the getting is good.
Saudi’s $69 bln asset rejig collides with reality 11 May 2020 Giant Aramco is trying to cut the price of last year’s deal to buy 70% of chemicals firm SABIC. A discount would give Riyadh’s Public Investment Fund less cash to pivot Saudi’s economy away from oil. Budget concerns make helping the kingdom’s corporate cash cow more important.
Russia’s oil-and-virus airbag is robust but finite 24 Apr 2020 The double whammy of a crude price collapse and Covid-19 could cause a hefty budget deficit. Moscow’s $170 bln wealth fund can plug a hole worth 5% of GDP if need be. The issue is more the optics of raiding the piggy bank while looking relatively stingy on subsidising wages.
Saudis’ Warren Buffett impression looks skin-deep 9 Apr 2020 The kingdom’s wealth fund looks to be ditching diversification by snapping up stakes in big European oil groups. Unless MbS knows something that others don’t, buying stock on the open market is riskier than a classic Sage of Omaha swoop. Oil groups may also be cheap for a reason.
Pre-virus era rule book will lead investors astray 31 Mar 2020 The market rout means Norway’s wealth fund and other money managers are less exposed to stocks than their ideal purely because shares fell so much relative to bonds. Rectifying the imbalance would unleash equity buying of $500 bln or more. But a return to old norms will be risky.
Corona Capital: Cirque du Soleil, Airlines, France 27 Mar 2020 Concise views on the pandemic’s corporate and financial fallout: Cirque du Soleil may leave TPG sunburnt. Airlines get a sweet bailout. And France joins the campaign against dividends.
Gulf’s sovereign funds are now gilt-edged airbags 19 Mar 2020 With oil now below $30 a barrel and emerging market outflows exceeding those seen in 2008, the region’s dollar pegs will be tested. Saudi Arabia and others may cut budgets in response. At the very least that implies ADIA, QIA and Mubadala’s dealmaking wings could be clipped.
Russia rainy day fund raid sets bad precedent 6 Mar 2020 The country’s National Wealth Fund may buy the central bank’s 50% stake in Sberbank for $36 billion. It’s a sneaky way for the government to boost spending without breaking its fiscal rules. The danger is that President Vladimir Putin repeats the ruse with other state firms.
Goldman faces drip-drip 1MDB pain like Jho Low 31 Oct 2019 The alleged mastermind of the Malaysian fund fraud will pay the U.S. $700 mln. The deal’s loose ends hint at future pain for others, including the Wall Street bank. CEO David Solomon wants to draw a clean line under the scandal. Instead Goldman could end up paying multiple times.
EU’s 100 bln euro tech fund scratches wrong itch 23 Aug 2019 Brussels officials, sad about not having their own Google, are cooking up an investment vehicle to fund home-grown unicorns. The bloc’s history suggests the main result will be a lot of squabbling. More important, lack of money isn’t what holds back European tech startups.
Abu Dhabi’s private equity plunge is sensible idea 15 Jul 2019 Hiking direct investments to the asset class by the emirate’s $700 bln sovereign wealth fund - and cutting reliance on fee-hungry buyout firms - raises risks when the economic cycle turns. But ADIA’s status as one of the more measured SWF dealmakers affords a degree of comfort.