There are some winners in the global financial crisis. The sovereign wealth funds have been cleaning up.
With reports that Kuwait’s sovereign wealth fund, the Kuwait Investment Authority, has made a $1.1 billion profit from the sale of its stake in Citigroup, it’s worth seeing who else has cleaned up from the misery of the US banking sector. Certainly, Kuwait has done a lot better than Citigroup investors. At the beginning of last year, Citigroup was trading at $15, now it’s $4.
As the New York Times reports, the sovereign wealth funds of Singapore, Qatar and Abu Dhabi have also made big profits.
The sovereign wealth funds are obviously moving to lock in gains. Which raises the obvious question: are they there as long term investors or for a quick buck?
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