"A big Middle Eastern investor is selling more than one billion shares in Barclays, the British bank, taking a profit on the investment it made during the financial crisis last fall. Barclays shares fell sharply Tuesday on the news. "
Somehow this was a surprise to the market?Barclays shares 2-day action
As a general matter, sovereign funds, both in the Middle East and in Asia are done with Western financial companies. They've loaded up, took losses, loaded up again, took more losses. They will be getting out with the right opportunities, but no new investments. The managers of these funds are civil workers. There is little upside for these guys if the performance is strong. On the other hand it's painful and embarrasing when they take a 50% hit. The new flavor of the day is infrastructure and energy. Long-term, private equity-style investing with little visible volatility. That's where sovereigns will focus going forward and we'll be following that development closely.