Abu Dhabi’s Waha to invest bulk of $200m in US stocks

Abu Dhabi investment firm Waha Capital plans to spend as much as $200m over the next few months, mainly on US equities.

“We can see a good number of opportunities in the US, mainly in listed companies after coronavirus-related declines,” chief executive officer Amr Al Menhali said.

Waha Capital has a “good amount of cash,” allowing it to buy without borrowing.

The first transaction could close as early as this or next week, he said, declining to provide further details.

Stocks globally have tumbled this year as the spread of the coronavirus halted business, grounded flights and forced people to stay at home. The S&P 500 has lost about 11 per cent this year.

Waha Capital, which manages about $3.6bn of assets, in December sold the remainder of a stake in New York-listed AerCap Holdings NV. It used the proceeds of more than Dhs900m ($245m) to repay some debt and plans to invest the rest, Al Menhali said.

The CEO also said:

• He expects to invest a combined $120m to $150m in five or six US-listed companies, including in healthcare, technology and telecoms.
• Waha Capital plans a Shariah-compliant fund by the end of the third quarter or early fourth quarter, with seed funding of $30m to $50m.
  • The fund will invest in equities and sukuk.
  • “We’ve been seeing huge demand, locally, for Sharia-compliant funds.”
• Also planning a fixed-income fund, to likely launch after the Islamic fund.
• Waha Capital is finalising the hiring of a chief investment officer for private investments.
  • Plans to hire more people, including fund managers for the business.
• Waha Capital currently doesn’t need any funding. “We are well-positioned in terms of cash, in terms of financial ratios.”

Waha Capital posted a loss of Dhs616m for 2019. The shares have lost 21 per cent this year.