SoftBank’s Vision Fund, the brainchild of company founder Masayoshi Son, has faced a number of headwinds, including a collapse in technology stocks due to rising interest rates, a difficult Chinese market and geopolitics.
Kentaro Takahash | Bloomberg | Getty Images
SoftBank posted one of its biggest losses at its Vision Fund investment unit for the fiscal first quarter as technology stocks struggle amid rising interest rates.
The Japanese giant’s Vision Fund posted a loss of 2.93 trillion Japanese yen ($21.68 billion) for the June quarter. This is the second largest quarterly loss for the Vision Fund.
That contributed to a net loss of 3.16 trillion yen for the quarter for SoftBank, compared to a profit of 761.5 billion yen in the same period last year.
SoftBank’s Vision Fund, which started in 2017 and invests in tech companies, has been hit by a slump in high-growth stocks due to rampant inflation that has prompted the US Federal Reserve and other central banks to raise interest rates.
Masayoshi Son, the outspoken founder of SoftBank and the brains behind the Vision Fund, said in May that the company would go into “defense” mode and be more “conservative” with the pace of investment after posting a record loss of 3. .5 trillion Japanese yen at the investment unit for the past fiscal year.
SoftBank said it saw the stock prices of many of its portfolio companies fall, “primarily driven by the global downward trend in stock prices amid growing concerns about an economic recession driven by inflation and rising interest rates.”
Shares of companies ranging from South Korean e-commerce company Coupang to DoorDash in the United States were hit hard in the second quarter.
SoftBank said the stock prices of private companies in its portfolio also fell.
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