Comments on: "Four myths about sovereign wealth funds" http://www.nakedcapitalism.com/2008/08/four-myths-about-sovereign-wealth-funds.html Sun, 22 Nov 2009 07:56:24 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/08/four-myths-about-sovereign-wealth-funds.html#comment-13034 Anonymous Sat, 16 Aug 2008 17:36:00 +0000 http://www.nakedcapitalism.com/2008/08/four-myths-about-sovereign-wealth-funds/#comment-13034 someone claimed in the comments of my blog that GIC is 3x leveraged. QIA and a host of smaller gulf funds (a Dubai fund and Bahrain's fund) are clearly borrowing tho in a more PE style. and I heard a fairly credible rumor from someone in a position to know that a couple of big SWFs were considering in house hedge funds as "talent" was cheap (I strongly argued against this -- noting that soveriegns shorting other countries currencies and banks could easily be misinterpreted). <br/><br/>so i would agree with Ted (who i worked for at one time) on his point that SWFs use leverage to increase their returns -- whether by investing in intermediaries that use leverage or more directly.<br/><br/>bsetser someone claimed in the comments of my blog that GIC is 3x leveraged. QIA and a host of smaller gulf funds (a Dubai fund and Bahrain’s fund) are clearly borrowing tho in a more PE style. and I heard a fairly credible rumor from someone in a position to know that a couple of big SWFs were considering in house hedge funds as “talent” was cheap (I strongly argued against this — noting that soveriegns shorting other countries currencies and banks could easily be misinterpreted).

so i would agree with Ted (who i worked for at one time) on his point that SWFs use leverage to increase their returns — whether by investing in intermediaries that use leverage or more directly.

bsetser

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