Abu Dhabi investment firm Waha Capital PJSC plans to spend as much as $200 million over the next few months, mainly on U.S. equities.
“We can see a good number of opportunities in the U.S., mainly in listed companies” after coronavirus-related declines, Chief Executive Officer Amr Al Menhali said. Waha Capital has a “good amount of cash,” allowing it to buy without borrowing.
The first transaction could close as early as this or next week, he said, declining to provide further details.
Stocks globally have tumbled this year as the spread of the coronavirus halted business, grounded flights and forced people to stay at home. The S&P 500 has lost about 11% this year.
Waha Capital, which manages about $3.6 billion of assets, in December sold the remainder of a stake in New York-listed AerCap Holdings NV. It used the proceeds of more than 900 million dirhams ($245 million) to repay some debt and plans to invest the rest, Al Menhali said.
The CEO also said:
- He expects to invest a combined $120 million to $150 million in five or six U.S.-listed companies, including in healthcare, technology and telecoms.
- Waha Capital plans a Shariah-compliant fund by the end of the third quarter or early fourth quarter, with seed funding of $30 million to $50 million.
- The fund will invest in equities and sukuk.
- “We’ve been seeing huge demand, locally, for Sharia-compliant funds.”
- Also planning a fixed-income fund, to likely launch after the Islamic fund.
- Waha Capital is finalizing the hiring of a chief investment officer for private investments.
- Plans to hire more people, including fund managers for the business.
- Waha Capital currently doesn’t need any funding. “We are well-positioned in terms of cash, in terms of financial ratios.”
Waha Capital posted a loss of 616 million dirhams for 2019. The shares have lost 21% this year.
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