As the economic crisis sent stock markets crashing into prolonged downward spirals, Abu Dhabi’s burgeoning pool of state investment vehicles endured a mix of pain and a sense of opportunity.
For the behemoth, the Abu Dhabi Investment Authority (Adia), it was a time to take the hits – with estimates of losses of 25 per cent to 30 per cent – and be cautious. Normally, Adia would hold between 40 and 60 per cent of its portfolio in equities, but as the crisis took hold it allowed its weighting to move to the lower end. Generally considered to be the world’s largest sovereign wealth fund, it was believed to increase the cash holding of its assets to 10 per cent.
