Sovereign Stealth Funds

Feb 3rd, 2008 | Filed under: Hedge Fund Industry Trends | By:
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Sovereign wealth funds have operated quietly in the shadows for many years.  But all of a sudden, they have been thrust into the limelight – subjecting them to a force with which many have not yet had to contend: the media.

The website Breaking Views recently published a list of sovereign wealth funds ranked on the basis of “the potential risk they present to western interests”.  The criteria: transparency, control of strategic sectors, and “political threat”.

Apparently, many of these funds remain quite secretive.  In fact, some don’t even disclose their size.  So you’d be excused for wondering how these funds actually conduct investment research and make allocations.

AllAboutAlpha.com has learned from a reliable source that this secrecy extends well beyond fund statistics.  Representatives from one of the twenty funds listed by Breaking Views have apparently attended investment conferences using made-up company names.

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  1. This form of funds always exists in the west.
    Many sovereign wealth funds are not mentionned in this paper. We can sort a list of Western sovereign wealth funds that are ligated and tied with their own goverment. Such fund as lacaisse runs 240BN tied with political obligations. http://www.lacaisse.com/Default.aspx
    They even control London Heartrow airport.

    One Big sovereign fund to mention is the French state owned Caisse des Dépôts that have strategic investement in EADS. http://www.caissedesdepots.fr/spip.php?article1

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