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Yasser Al-Rumayyan, governor of Saudi Arabia’s sovereign wealth fund, said he has discovered why billionaire investor Ray Dalio has been in the financial markets for years while he and others remain optimistic.
At a Priorities Summit organized by the New York Institute of Fisheries on Thursday, Al-Rumayyan, who manages the Riyadh-based Public Investment Fund, said Dalio is “like a film critic, a theater critic.” “Before going there, he knew it was going to be a bad story, bad production, bad cast. And he knows before he sits there, but he has to sit there to give his critique.”
On the other hand, PIF said, “We can provide the right production, we can bring in the right actors, we can deliver the right story and put it together.” “We control our own destiny.”
With assets of $620 billion through the end of the first quarter, the Public Investment Fund is the sixth largest sovereign wealth fund in the world, according to the SWF Institute. It originated from a local holding company in 2016 and has been on a global buying spree ever since.
Al-Rumayyan said Dalio, founder of Bridgewater Associates, agrees with his comparison of comprehensive worldviews to more targeted bets. The two investors, along with others, including Stephen Schwarzman of Blackstone Inc. , as part of the FII Committee in 2019.
Dalio, the 90th richest person in the world with a fortune of $16.2 billion, often thinks about the direction of monetary policy and the economy, directing his view of financial markets. Earlier this month, he wrote on LinkedIn that US interest rates at around 4.5% would lead to a roughly 20% drop in stocks.
Like many other macro funds, Bridgewater’s Pure Alpha strategy rebounded in 2022 after years of struggle. It’s up 27.4% through August, according to a person familiar with the matter.
A Bridgewater representative did not immediately respond to a request for comment.
Al-Rumayyan said during Thursday’s event that oil and gas companies have been vilified, prompting the world to “manage the crisis” when it comes to energy.
“The world will stop” without fossil fuels, he said. When it comes to climate change, “we’re probably not doing a good job and are putting our finger on the actual problems.”
Al-Rumayyan said that for every dollar the Public Investment Fund publishes in Saudi Arabia, he wants to see a $2 economic multiplier. The fund, which was established five decades ago, currently has six investment pools, two looking for international opportunities and four focusing locally.