Thu, May 26, 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. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  4. West Virginia objects to Alpha Natural sale to hedge fund[more]

    From AP/Heraldcourier.com: West Virginia's environmental authority has filed an objection to the proposed $500 million sale of Alpha Natural Resources' assets to a hedge fund, arguing that the deal could leave the state holding hundreds of millions in reclamation liabilities. The Register-Hera

  5. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America