Sovereign Wealth Funds march on

Kim Warren — Mon, 15 Mar 2010 07:58:17 +0000

Monitor reports further growth in activity by SWFs. Transactions throughout Q309 found transactions more than doubling in number from 11 in Q2 to 25 in Q3, plus a dramatic increase in value from $3.5 billion to $25.3 billion in Q3. Favoured sectors include engineering-related and raw materials industries. As I have noted before, these players could have a big impact on competitive conditions in affected industries, especially if they are active investors with poor strategic capability.

Sovereign Wealth Funds impact

Kim Warren — Tue, 23 Jun 2009 07:39:48 +0000

Have noted before the major role that Sovereign Wealth Funds may play as the global economy recovers, in particular those engaged in active management, not just passive investment, e.g. Mubadala Development Co from UAE. Reports from Monitor have much to say on this – Weathering the Storm and Testing Time. As I have urged before, strategy requires asking how the future might develop, so if you are in an industry where these funds are active note that this phenomenon is not without risk. If such groups pursue strategies informed by financial portfolio thinking, for example, they could end up replicating the ‘diversified corporation’ mistakes of the 1960s and 70s, with unfortunate consequences for themselves and the industries in which they invest – and for you, if you’re in the same industry!

Talking about strategy » Sovereign Wealth Funds

Sovereign Wealth Funds march on

Sovereign Wealth Funds impact