SoftBank’s Vision Fund, the brainchild of company founder Masayoshi Son, has faced a number of headwinds, including falling tech stocks as a result of rising interest rates, a tough China market and geopolitics.
Kentaro Takahash | Bloomberg | Getty Images
SoftBank posted one of its biggest losses at its Vision Fund investment unit for its fiscal first quarter, as tech stocks continue to get hammered 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 biggest quarterly loss for the Vision Fund.
That contributed to a net loss of 3.16 trillion yen for the quarter for SoftBank versus a profit of 761.5 billion yen in the same period last year.
SoftBank’s Vision Fund, which launched in 2017 and invests in technology companies, has been hit by a slump in high-growth stocks as a result of runaway inflation that has prompted the Federal Reserve and other central banks to raise interest rates.
Masayoshi Son, SoftBank’s outspoken founder and the mastermind behind the Vision Fund, said in May that the company would go into “defensive” mode and be more “conservative” with the pace of investments after posting record losses 3, 5 trillion Japanese yen in the investment unit. for the last financial year.
SoftBank said it saw a decline in the share prices of a wide range of its portfolio companies, which was “primarily caused by the global downward trend in share prices due to growing concerns about an economic slowdown due to 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 of the year.
SoftBank said share prices of private companies in its portfolio also fell.
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