11.06.2015 - Paul Singer: Big Trouble Ahead For SWFs
Sovereign wealth funds represent money owned by nations and invested in securities and other assets located generally outside those nations. With trillions of dollars of assets, they have emerged as significant investors in a relatively short period of time. Their appetite for variety in investing has also grown, and now they are among the largest investors in Hedge Funds and private equity funds, in addition to their direct ownership of securities, real estate and other assets. Even sovereign wealth funds that are unrelated to oil and gas money could be subject to shifting directions in any future crisis-driven market environment, which could cause sudden disruptive capital flows. How the political leaders in these countries will act in a period of market stress is very uncertain, but the potential volatility from such entities does not really lend itself to confident modeling...............................................Full Article: Source
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