Have noted before the major role that Sovereign Wealth Funds may play as the global economy recovers, in particular those engaged in active management, not just passive investment, e.g. Mubadala Development Co from UAE. Reports from Monitor have much to say on this – Weathering the Storm and Testing Time. As I have urged before, strategy requires asking how the future might develop, so if you are in an industry where these funds are active note that this phenomenon is not without risk. If such groups pursue strategies informed by financial portfolio thinking, for example, they could end up replicating the ‘diversified corporation’ mistakes of the 1960s and 70s, with unfortunate consequences for themselves and the industries in which they invest – and for you, if you’re in the same industry!