Even the big investors are short on money! Abu Dhabi sovereign fund sells off billions of dollars in US stock holdings

Abu Dhabi sovereign funds have been intensively selling off their holdings, cashing out billions of dollars at the market peak.

This Tuesday, Mubadala Investment Co. offloaded shares of the chip manufacturer GlobalFoundries through a block trade, raising approximately $1.9 billion.

Abu Dhabi Investment Authority (ADIA), on the other hand, cashed out $273 million through the sale of its shares in the medical supplier Medline.

These actions to reduce holdings come at a time when global stock market sentiment continues to heat up. Since its low in March, the S&P 500 index has risen more than 19%, providing a favorable window for sovereign funds to lock in profits.

Mubadala completed a block trade of GlobalFoundries on Tuesday night, cashing in around $1.9 billion.

In a statement, Mubadala said that GlobalFoundries remains an important long-term investment for the fund, and that it continues to hold a 73% stake in the company after the sale.

Mubadala stated that it “highly recognizes” GlobalFoundries’ strategic direction and believes that broadening the shareholder base will further strengthen the company’s market position.

Meanwhile, Medline’s major shareholders completed a stock sale last weekend, raising $273 million for Abu Dhabi Investment Authority.

This marks ADIA’s second cash-out from Medline this year, having previously raised $253 million through a sell-down (including the greenshoe option) in March.

On the same day, power equipment company Innio set terms for its $2 billion IPO, from which Abu Dhabi Investment Authority, as a significant minority shareholder in Innio’s parent company, will see considerable returns.

Despite the large-scale profit-taking, Abu Dhabi’s sovereign funds remain actively deploying into new assets.

Last week, Abu Dhabi Investment Authority participated in CVC Capital Partners Plc’s acquisition offer for Italian pharma company Recordati SpA, which valued Recordati at approximately 10.7 billion euros (about $12.4 billion).