Fri, Jan 30, 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: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalaurMor Management in New Yor

  2. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  3. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  4. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  5. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would