Saudi Arabia’s Public Investment Fund (PIF) has made strategic adjustments to its US equities portfolio, reflecting a shift in focus towards technology investments while trimming its position in Starbucks, the global coffee giant.
In its latest filing with the Securities and Exchange Commission, PIF reported a 3.7% reduction in its Starbucks call options, amounting to a decrease of 138,800 shares. This move follows a significant reduction last quarter when the fund nearly halved its Starbucks holdings from 6.3 million shares to 3.8 million, bringing the valuation down to $282 million. The cut in Starbucks holdings comes amidst a backdrop of boycott calls against the brand in the Middle East over its perceived stance in the ongoing Gaza conflict, a claim Starbucks has denied.
Despite these challenges, Starbucks has continued its regional expansion, notably opening 55 new locations in Saudi Arabia over the past year, followed by growth in Turkey and Dubai.
While trimming its stake in Starbucks, PIF increased its bullish positions in several key technology stocks. Notably, the fund added 1.2 million shares in American chipmaker Advanced Micro Devices (AMD), raising the total market value of this investment to $374 million. The sovereign wealth fund also tripled its stake in the Brazilian digital bank Nu, adding 2.6 million shares to its portfolio.
PIF’s overall US equity holdings saw a modest increase, rising by $100 million to $20.7 billion. Uber remains PIF’s largest holding, valued at $5.3 billion, representing nearly 26% of its US portfolio. Lucid Motors follows with a valuation of $3.6 billion, though this marks a slight decrease from its previous 19% to 17% of the portfolio.
The fund also made significant reductions in its positions in other sectors, including a 25% decrease in its call options for American travel technology company Booking Holdings and closing out its stake in biotech firm Allurion Technologies.
These portfolio adjustments align with broader market trends and reflect PIF’s strategy to capitalize on potential rebounds in the tech sector, despite recent volatility.
