The Qatar Investment Authority (QIA), the owner of Harrods, has made a substantial gain of around $892 million from the sale of its shares in Tiffany & Co. This comes as part of LVMH’s acquisition of the iconic American jeweler for a whopping $15.8 billion, which was successfully completed last week. The QIA, a longstanding investor in Tiffany & Co., earned a impressive profit from its initial 5.2% stake acquisition in 2011.

Over the years, the QIA strategically increased its stake in Tiffany & Co., eventually selling its remaining 9.3% stake as part of a renegotiated deal with LVMH. The agreement, reached in October, involved LVMH paying $131.5 per share to Tiffany shareholders. The sale of the QIA’s stake in the company amounted to $1.55 billion, resulting in a total gain of approximately $892.3 million. This represents an internal rate of return of 9.3% on the QIA’s total investment, which is considered highly impressive by experts in the industry.

Diego López, the managing director of Global SWF, emphasized the significance of this gain, stating that “it represents a very good return for a listed equity in any environment.” This profit showcases the profitability of the QIA’s investment in Tiffany & Co. and demonstrates the successful execution of their investment strategy.

Despite the challenges posed by the ongoing COVID-19 pandemic, Tiffany & Co. has shown signs of recovery. The luxury retailer reported a 70% increase in sales in China and a remarkable surge of 92% in e-commerce sales in the last quarter. These positive indicators further validate the QIA’s decision to invest in the company.

Despite the success of the transaction, the QIA has not made any comments regarding it. The sale of Tiffany & Co. shares is just one of many strategic investments made by the QIA in the wake of the global financial crisis. Utilizing the wealth generated from its abundant natural gas reserves, the sovereign fund has acquired a range of assets, from luxury German sports car manufacturer Porsche to London’s prestigious business district, Canary Wharf.

In conclusion, the QIA’s gain of $892 million from the sale of Tiffany & Co. shares highlights the success of their investment strategy. This significant profit showcases the profitability and strategic decision-making of the sovereign fund, solidifying its position as a key player in the global investment landscape.

Here are two links related to the article:
1. Reuters: Qatar’s sovereign wealth fund QIA sells Tiffany stake for $889 million profit
2. Bloomberg: Qatar Investment Authority Boosts Q4 Portfolio as Assets Grow