The rankings and their investment strategies!
The report presents a rich insight in to the habits and practices of the wealthy investors and the investment choices they made at certain points in time- the report gives a peek in to their stock picks as well as their portfolio make up during these challenging times. Did they get swayed the events or stayed their course?
How did the Wealthy investors strategize during these times? Did they flee the markets before the others thereby savings the major losses? Did they consolidate their holdings?
Who are the wealthiest investors in the domestic market?
"The report makes a fascinating reading ...it makes us think strategically about our own portfolios ....and helps in shaping our investment point of view."
" It acts as barometer for an investor seeking to read the minds of the wise and wealthy experts".
"A novel approach by the FALCOM research team to understand what fuels their investment spirit and to read in to the decision making dash boards of these bold captains of wealth management and see how they charted their investment destiny.
The 10 big Highlights from the FALCOM Wealthy investors watch 2009
1) 275 investors had crossed the 5% limit set by Tadawul to feature in this study across 135 listedcompanies. However by 30th September, 18 of them sold their holdings to fall out of the final list.
2) Public Investment Fund (PIF) is the largest investor in the Saudi Stock Market (Tadawul) with a portfoliosize of whopping SR 281.4 billion at the end of third quarter.
3) Top 10 investors in the Saudi Stock Market (Tadawul) together hold SR 543.6 billion worth of sharesaccounting for 44% of the total market capitalization of SR 1.2 trillion on 30th September 2009.
4) Government dominates the market and their actions are worth applauding with SR 411 billion or more than 34% of the entire market- PIF, GOSI, Public Pension Agency and SAMA
Increased their stakes in a market downturn. Their action sends very positive signal to the common investors. This is a better way to signal commitment to the capital markets than to simply buy the loss making portfolios of investors and park them with the Government until markets recover.
5) Sulaiman Abdulaziz Saleh Al Rajhi was the biggest individual investor and moved ahead of Prince Alwaleed Bin Talal Al Saud in last six months.
6) Ranking of Prince Alwaleed Bin Talal Al Saud slipped in past 6 months despite his holding rising in Kingdom Holding Company from 94% to 95% as the stock underperformed to the overall market.. Against an increase of 34.4% in the market benchmark over past 6 months, Kingdom Holding Company gained 22.4%.
7) Top 10 investors do not shuffle their portfolios frequently. Notably, they have taken advantage of beaten down market conditions to raise their holdings.
8 ) There are only two occasions where their holdings have dropped; once when General Organization for Social Insurance (GOSI) reduced its stake in Industrialization Company (NIC) slightly from 5.8% to 5.5% during first quarter and on another occasion Public Pension Agency reduced it's holding in Pharmaceutical Company (SPIMACO) from 20% to 13%.
9)Conservative approach by the investors early but strategic moves to gain ground " a wait and watch approach " Only three among top 10 investors raised their stakes in the first quarter 2009- GOSI, Public Pension Agency and Saleh Abdulaziz Saleh Al Rajhi. Comparatively in the next six months when market started to move up, as many as six investors took advantage of low prices to increase their holdings.
10) Investors staying the course " long term play "
Study shows Wealthy investors have mostly maintained their shareholding. But there are incidents of them increasing the stake in down market or even sell it. For its size of SR 281.4 billion, Public Investment Fund (PIF) has a focused approach to portfolio management with investments in only 18 companies. GOSI has invested SR 72.9 billion in 30 companies.
The way the research was conducted
FALCOM Research looked at investments of Wealthy investors at the end of three of last four quarters - 31st December 2008, 31st March 2009 and 30th September.
Tadawul announces the changes in the holdings of those who have invested 5% or more in every company on daily basis.
The study is entirely dependent on the data released by Tadawul. Other mega investors who just fall short of 5% threshold are not part of this study for the obvious lack of data although they might also be influential players in the market.
The entire data availability is in Arabic. At the very outset, we regret any errors in translation despite our best efforts.
FALCOM Research tracked the holdings of Wealthy (5% and above) shareholders across all the listed companies at the end of last three quarters. Further, we segregated the investors under different categories - Government and its agencies, Individuals and Corporate. Investors resembling groups of associates were put under Corporate category along with any companies investing in the market.
Similarly, the data was collected for issued shares for all the companies. FALCOM Research then calculated the value of shares held across companies for every investor. This data was then sorted to assign rankings.
It is important to note that intra-day trading as well as trading by these investors in the long interim during quarters does not reflect in the analysis. Admittedly, it is impossible and futile to track everyday transactions of these mega players.
-Ends-
© Press Release 2009
