Royal Group (SZ:002329), an investment group run by a top Abu Dhabi royal, Sheikh Tahnoon bin Zayed Al Nahyan, is concerned a recession will pressure markets and has amassed a short position on US equities that is said to be worth billions.
According to a report from Bloomberg, the investment firm turned negative on stocks at the start of the year and shifted its portfolio to short-term treasuries. It is also investing more in commodities and crypto.
It wasn’t clear which stocks or sectors the firm is betting against.
Royal Group, a conglomerate that helps manage one of the world’s biggest family fortunes, will look to boost exposure to the US once valuations improve and the Fed signals it’s gearing up to cut interest rates, the report said.
Officials declined to comment.