- $2.7 billion decline on GlobalFoundries
- Investment in Bitcoin ETF
- 18 new acquisitions in Q1
The Mubadala Investment Company, a sovereign wealth fund from Abu Dhabi, reported a significant paper loss of $2.7 billion regarding its majority ownership in the US semiconductor giant GlobalFoundries during the first quarter, according to filings with US regulators.
The share price of GlobalFoundries has decreased by approximately 50% from its peak in March 2022, continuing its downward trend this year.
As of March 31, the value of Mubadala’s 81.5% stake in the New York-based tech firm has dropped to $16.6 billion, marking a 14% decline compared to the figure at the end of December.
GlobalFoundries ranks as the third-largest semiconductor foundry globally by revenue, manufacturing integrated circuits for sectors such as automotive, aerospace, and defense.
Mubadala’s investment strategy in the US differs significantly from that of Saudi Arabia’s Public Investment Fund (PIF). While the PIF, valued at $940 billion, possesses multi-billion stakes across 34 companies—often utilizing call options—Mubadala invests solely in equities in smaller quantities, aside from its stake in GlobalFoundries.
The downturn in GlobalFoundries’ stock reflects a difficult first quarter for US stock indices, which peaked in early February before experiencing a downturn in March and a sharp decline in April, largely due to uncertainties surrounding President Donald Trump’s import tariff policy.
During the first quarter, the S&P Global 500 index decreased by 4.3%, while the Nasdaq Composite index fell by 10.4%.
However, markets have since shown signs of recovery, with the S&P 500 nearing 6,000 points again, approaching its all-time high of 6,147.
Mubadala managed assets worth $330 billion as of December 31 and regularly reports its investments in publicly traded US companies to regulators.
This latest filing revealed that the total value of Mubadala’s investments in US-listed entities is now at $17.6 billion, down from $20.5 billion three months prior.
Another notable investment by Mubadala is in a Bitcoin exchange-traded fund (ETF). An ETF is an investment vehicle that holds a mix of assets such as stocks, bonds, and currencies, traded on stock exchanges similar to regular shares.
Mubadala appears optimistic about cryptocurrency, having increased its stake in the ETF by 500,000 shares, bringing the total to 8.7 million shares by March 31, despite Bitcoin’s lackluster performance during the first quarter.
Bitcoin’s price saw a decline of 11.6% in the initial three months of the year, reaching $82,549, although it has since climbed back to approximately $102,550 as of Monday.
The downturn during the first quarter resulted in a depreciation of Mubadala’s ETF holdings to $437 million, down from $409 million at the end of December.
Out of Mubadala’s stakes in 53 firms, only six exceed a valuation of $10 million. When excluding the GlobalFoundries and Bitcoin ETF holdings, the median value of the remaining investments is calculated at $3.4 million.
During the first quarter, Mubadala restructured its portfolio, acquiring shares in 18 new companies, including pharmaceutical manufacturer Bristol-Myers Squibb and travel service provider Expedia, while completely divesting from nine firms, such as Pfizer, Bank of New York Mellon, Citigroup, and dating platform Match Group.
Throughout the period from December 31 to March 31, Mubadala retained ownership in 36 companies, of which 12 saw price increases while 24 faced declines. Among the declining stocks, the average loss was 12.4%, while those that gained saw an average increase of 12.1%. AGBI’s analysis provides these insights.
In the first quarter, Mubadala augmented its positions in 13 companies, albeit some with minor increases in holdings. This includes additional investments in retailer Gap, Western Union, and property consultancy Jones Lang LaSalle.
Mubadala also reduced its stakes in 14 companies, offloading shares in major firms like Coca-Cola and cruise line operator Carnival Corp.
