Wed, Jul 8, 2015
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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner