A world-class fund in the United States is preparing to take a big bet on emerging markets.
The US Securities and Exchange Commission is expected to announce Thursday that it has raised more than $50bn in equity, bond and options to invest in emerging market companies, such as Uber.
US stock index futures have soared more than 300% since the start of 2017, with the S&P 500 soaring 538% over the same period.
In 2018, the S.&.
500 gained 2.3% over this period.
The fund, called Russell 2000, is one of the most successful global investors, with a turnover of more than £1.5bn ($2.8bn) in 2019.
It is now in the process of buying an interest in China’s state-run Tencent Holdings Ltd.
The company, a digital payments and internet company, has been one of China’s most successful private companies.
It raised £9bn in a private funding round last year and has plans to raise more than twice that.
Russell 2000 said it would use its money to fund the acquisition of stakes in 10 emerging markets in 2019, including Indonesia, the Philippines, Brazil, Russia, South Africa and China.
The funds biggest investment in 2019 was in Indonesia’s e-commerce giant Alibaba, which was valued at $12bn ($16.6bn).
In China, Russell 2000 is taking a more passive approach, investing in small investments such as stockbroking firms.
But the fund is expected later this year to invest more in stocks, which could create opportunities for it to take on more investments, according to a report in The Wall Street Journal.
Russell 2000 chairman and CEO David Riddell said in a statement: “We believe that emerging markets are a critical opportunity for investors and that our strategy of creating new opportunities to invest directly into emerging markets is a winning one.”
The fund’s largest investment in 2018 was in India’s telecoms group Reliance Industries, valued at almost $10bn.
Russell 3000 has said it will buy up to 40% of Reliance, which is currently trading at $9.72, according the Wall Street Review.
Russell 1000 is also buying up shares in two Indian private telecoms firms, Bharti Airtel Ltd and Reliance Communications Ltd, which are currently trading in the $7.60 range.
It has said that it will also be buying up stake in companies such as Snapdeal and Uber.