Members of the world’s ultra-wealthy are striking bets on a range of sectors seeing valuation swings in the fallout from the war in the Middle East, signaling how rising geopolitical tensions are reshaping private investors’ focus.
Jaime Gilinski, Colombia’s richest man, has repeatedly increased his stake in Latin America independent oil and gas producer GeoPark Ltd. since he and his son made a $107 million investment in March, envisioning the company as a vehicle to enter Venezuela’s recovering oil sector.
A family office for the heirs of Swedish oil and mining tycoon Adolf Lundin spent almost C$40 million ($29.5 million) in March to boost its holdings in Vancouver-based copper and diamond mining companies, as supply-chain squeezes helped bolster prices for natural resources. And investment firms for the dynasties behind Italian car-maker Ferrari NV and US media conglomerate Cox Enterprises backed defense startups in recent months including Hermeus Corp., which is seeking to build the fastest uncrewed jet aircraft ever for the US Department of Defense.
The four families have a collective net worth of about $90 billion, with their multi-generational fortunes dating as far back as 1898, according to the Bloomberg Billionaires Index.
The transactions reflect how some of the world’s rich investors are positioning their portfolios in response to rising geopolitical tensions, largely driven by President Donald Trump’s ongoing shakeup of the world order.
Price for oil, gold and other natural resources have rallied this year due to global trade disruptions and investors fleeing to safe haven assets following Trump’s efforts to capture Venezuela leader Nicolas Maduro, bring the territory of Greenland under US authority and attack Iran.
Billionaires including Mexico’s richest man, Carlos Slim, are already pocketing outsized gains from the financial shocks. Global political uncertainty has also helped to add more than $20 billion to the collective fortunes of individuals and families with stakes in listed defense businesses this year.
A JPMorgan Chase & Co. survey of 333 investment firms for the super-rich published in February found one in five rank geopolitics as their top risk, outpacing concerns over liquidity and inflation.
“We are operating in a time where the geopolitical and geoeconomic overlay has never been so important to capital stewardship,” said Sara Macedo, managing principal at Emissary Partners, a London-based asset advisory firm for ultra-wealthy individuals and their investment firms. “Families should have their eyes beyond the horizon, understanding how decisions are being made at the most senior levels.”