Mon, Aug 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund Passport Capital betting $230m on MENA region

Thursday, June 09, 2011
Opalesque Industry Update – John Burbank, the Founder of San Francisco-based hedge fund firm Passport Capital LLC is betting an estimated $231m or about 11% of the assets of his company’s $2.1bn flagship fund Global Strategy, into new Saudi portfolios. Burbank is particularly interested in publicly-traded petrochemical companies, banks, construction firms, and even health-care providers.

According to a Bloomberg report, Burbank is actually seeing huge potentials from the current political turmoil in the Middle East and North Africa, as well as the dip in the prices of oil, metals, and other raw materials.

In his assessment, Burbank is confident the ongoing political upheaval in the Middle East and North Africa will not spread to Saudi Arabia and that the monarchy’s reign is well positioned to survive negative criticisms over its decision to aid Bahrain in quelling an uprising, and its support of rebels causes in Libya and Syria.

He was quoted as saying, “The crisis isn’t affecting the long-term reality that this is where the oil is. We want exposure to the Saudi economy because the prices are very cheap and there’s going to be a lot of growth and higher returns on capital, and that’s something that’s likely to play out over a number of years.”

According to the 47-year-old hedge fund manager, oil prices will stabilize and the decision of the Saudi Kingdom to open its economy to foreign investors, make it “the time to plow into the country’s petroleum-rich economy.”

Looking ahead, Burbank is still confident that emerging economies will be the global growth driver. He said that as the emerging markets continue to develop its economies, there is a huge opportunity that little-known raw material producers will be converted into “money machines” in the future.

- Komfie Manalo

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new