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Activist investor Elliott dumps SoftBank stake after Japanese group recorded $50B loss in six months
By Arghyadeep Dutta - Aug 16, 2022, 10:25 AM ET
Last Updated - Jul 18, 2023, 04:33 PM EDT
• SoftBank shares have dropped almost 50% from their peak
Hedge
fund Elliott Management has sold almost all its remaining shares in the
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Japanese investment giant SoftBank Group Corp after investing as much
as $2.5 billion, the Financial Times reported on Tuesday, citing people
familiar with the matter.
Elliott
started cutting back its stake earlier this year when tech stocks,
including SoftBank’s, were in the grip of an extended sell-off.
SoftBank’s
portfolio has been hit by a collapse in tech valuations as investors
became skeptical of the high-growth stocks it favors amid the recession
fears.
Shares
of the Japanese group exceeded dot-com bubble highs in March 2021 but
have lost almost half their value as its portfolio slid. SoftBank’s
Vision Fund investment arm recorded a loss of around $21.68 billion in the second quarter and $50 billion in the first half of the year as its tech bets soured.
The
exact size and timing of the recent sell-off were unknown, but it took
place earlier this year as SoftBank was affected by the tech downturn,
the report said, citing one of the sources.
Moreover,
the news comes as investors increasingly lose confidence in SoftBank’s
Chief Executive Masayoshi Son and his ability to close the valuation gap
between the company and its portfolio holdings.
Picture Credit: Reuters
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