Adia taps scientists and hedge funds to boost returns

Unsplash.com/Annie Spratt

The Abu Dhabi Investment Authority (Adia), the UAE’s largest sovereign wealth fund, is using a team of 125 data scientists and hedge funds to expedite its decision-making process.

“We are using our increased data and scientific skills to assist the senior investment team to make dynamic allocation decisions,” Bloomberg reported, quoting Jean-Paul Villain, director of the fund’s strategy and planning department.

This data-driven approach will enable Adia to capitalise on time-sensitive opportunities, such as investing in specific sectors or geographies.

The $1 trillion wealth fund is also increasing its exposure to private credit and hedge funds.

However, this collaboration is not likely to increase the fund’s overall hedge fund exposure.

“The key driver for the important changes we have made in recent years is that the external environment has changed,” Villain said.

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Adia’s transformation has been underway for five years, with the plans first discussed at the beginning of the pandemic, the report said.

Adia has backed several high-profile investments recently, including Advent International’s purchase of a stake in US wealth manager Fisher Investments, Blackstone’s $14 billion acquisition of a climate technology business from engineering group Emerson, and KKR’s €22 billion ($23 billion) acquisition of Telecom Italia’s fixed-line phone and internet network.