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Saudi Public Investment Fund to invest in “Archegos Capital Management”

Saudi Quarterly Budget Registers Record Surplus

The Saudi Public Investment Fund (PIF) has invested heavily in one of the shares linked to the liquidation of the “Archegos Capital Management” fund while maintaining its largest holdings of other listed shares in the US last quarter.

The Public Investment Fund acquired $110.8 million in Farfetch Ltd shares at the end of December, representing a 1% stake in the London-based online luxury retail platform after increasing its holdings by nearly 1,000%, according to data provided to regulators.

Farfetch was involved in a series of mega-deals after the Archegos fund failed to meet margin calls last March.

Investment firm Couture Management, owned by Philip Lavon, was among the firms that swooped on the remnants of distressed assets of a hedge fund led by Bill Huang, buying a $148 million stake in Farfetch, a deal that closed in the second quarter of last year.

After the forced liquidation of the holdings linked to the “Archegos” fund, “Farfetch” stock fell and is currently trading at a drop of 74% from the record high it reached a year ago.

Stocks are still trading above 2020 lows, and analysts are targeting a potential return of 125% on the stock over the next 12 months, according to data compiled by Bloomberg.

The Public Investment Fund also bought additional shares in “Visa Inc”, “Ali Baba Group”, and “Pinterest Inc.” Its declared holdings of listed stocks in the US amounted to $56 billion.

Headed by Crown Prince Mohammed bin Salman, PIF concluded a year that saw it multiply its holdings of US stocks by about 4 times after it took a more prominent role in global markets.

PIF may invest about an additional $10 billion in listed stocks this year.

Moreover, it seeks to increase its assets to more than SAR 4 trillion (a dollar is equivalent to 3.75 riyals) by 2025.

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