SoftBank Imaginative and prescient Fund posts a $21.6 billion quarterly loss

SoftBank’s Imaginative and prescient Fund, the brainchild of the corporate’s founder Masayoshi Son, has confronted a variety of headwinds together with a droop in know-how shares on account of rising rates of interest, a troublesome China market and geopolitics.

Kentaro Takahash | Bloomberg | Getty Photos

SoftBank posted considered one of its greatest losses at its Imaginative and prescient Fund funding unit for its fiscal first quarter, as know-how shares proceed to get hammered amid rising rates of interest.

The Japanese large’s Imaginative and prescient Fund posted a 2.93 trillion Japanese yen ($21.68 billion) loss for the June quarter. That is the second largest quarterly loss for the Imaginative and prescient Fund.

That contributed to a 3.16 trillion yen internet loss for the quarter for SoftBank versus a 761.5 billion yen revenue in the identical interval final yr.

SoftBank’s Imaginative and prescient Fund, which started in 2017 and invests in know-how corporations, has been hit by a droop in high-growth shares on account of rampant inflation that has led the US Federal Reserve and different central banks to lift rates of interest.

Masayoshi Son, SoftBank’s outspoken founder and the mastermind behind the Imaginative and prescient Fund, mentioned in Could the corporate would go into “protection” mode and be extra “conservative” with the tempo of investments after posting a file 3.5 trillion Japanese yen loss on the funding unit for the final fiscal yr.

SoftBank mentioned it noticed a decline within the share costs of a variety of its portfolio corporations, which was “primarily brought on by the worldwide downward pattern in share costs attributable to rising considerations over financial recession pushed by inflation and rising rates of interest.”

Shares of corporations starting from South Korean e-commerce agency Coupang to DoorDash in america have been hit exhausting within the second quarter of the yr.

SoftBank mentioned the share costs of personal corporations in its portfolio additionally declined.

That is breaking information. Please examine again for updates.

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