Saudi Arabia's Sovereign Wealth Fund Exits US Stocks Amid Market Volatility

Saudi Arabia's Public Investment Fund (PIF) exited positions in US-listed stocks, including Meta Platforms, FedEx, and Shopify, during Q2 due to market volatility. The PIF's US portfolio decreased by 7% to $23.8 billion. The fund has focused on international investments, but has stated plans to reduce the share of global investments.

The Saudi Arabia Public Investment Fund (PIF) has made significant adjustments to its portfolio during the second quarter of 2025, exiting positions in several US-listed stocks including Meta Platforms, FedEx, and Shopify. This move comes amidst ongoing market volatility and a strategic shift in investment focus.

According to the latest PIF annual report [1], the fund's US portfolio decreased by 7% to $23.8 billion. This reduction is part of the PIF's broader strategy to reduce its share of global investments and increase its focus on domestic projects. The PIF's assets under management (AUM) climbed 19% from the end of 2023 to $913 billion, reflecting a significant growth in the fund's overall size.

The PIF's decision to exit certain US-listed stocks aligns with its broader strategy to diversify its investment portfolio and reduce exposure to volatile international markets. This adjustment follows a trend of lower global oil prices and a growing fiscal deficit for the Saudi kingdom, which has led to a reduction in gigaproject investments by 12.4% to 211 billion Saudi riyal ($56.2 billion) [1].

The fund has also broadened its funding base by raising nearly $10 billion in public debt and $7 billion privately. This increased capital will be directed towards high-growth areas such as artificial intelligence, reflecting the PIF's commitment to diversifying its revenue streams beyond oil.

The PIF's annualized returns dropped to 7.2% from 8.7% the previous year, indicating a slight decline in performance. However, this is not unexpected given the challenging economic conditions and the fund's strategic realignment.

In contrast, GreenFirst Forest Products, a key player in Ontario's forestry sector, has navigated the volatile lumber market with a blend of operational discipline and forward-looking capital allocation. The company reported a net loss of $9.6 million in Q2 2025, driven by falling lumber prices and a 35.19% increase in U.S. duties. Despite these challenges, GreenFirst's strategic capital expenditure plan aims to boost output by 20% and cut costs by 10-15% [2].

For investors, the PIF's strategic adjustments and GreenFirst's operational resilience offer insights into how large funds and companies are navigating challenging market conditions. The PIF's focus on domestic investments and diversification, along with GreenFirst's strategic capital allocation, provide valuable lessons in risk management and long-term value creation.

References:
[1] https://www.cnbc.com/2025/08/14/saudi-arabia-pif-fund-sees-8-billion-writedown-in-megaprojects.html
[2] https://www.ainvest.com/news/greenfirst-q2-2025-earnings-strategic-capital-investment-navigating-lumber-market-volatility-operational-resilience-2508/