Tech Sell-Off hits SoftBank's Vision Fund Hard
The company's fund records $27 Billion loss in earnings report...
The Vision Fund Investment Unit of SoftBank reported a record loss as the tech sell-off continues. Heavily influenced by inflation and a Beijing crackdown, the fund reported a loss of $27.4 Billion (3.5 Trillion yen) for the fiscal year ending on March 31st.
SoftBank as a whole tallied losses of 1.7 Trillion yen and shares shed 8% at the close in japan. The global markets have been distraught as inflation scaled to 8.3% and the Fed has been raising interest rates as investors leave their investments with tech stocks deemed “high growth.”
To add to the economic instability, Russia’s invasion of Ukraine and the revival of Covid in China have increased concerns. One of the companies which weighted in the most for the losses is Coupang, which went public in the U.S. last year and is currently down 60% YTD. Grab and DoorDash are also two major companies dragging the fund down.
Some of the private company investments SoftBank takes part in have also experienced some write-downs in valuations. The company seems to be going into a form of defensive investing adding less flexibility to their criteria of investments.