Article: Will the SWFs Ever Return?(sovereign wealth funds)

Byline: Jonathan Marino

If M&A had a lemon law, the sovereign wealth funds could make a pretty good case for the US courts. Temasek lost billions on its investment in Merrill Lynch, while China Investment Corp. poured $3 billion into the Blackstone Group ahead of both the firm's IPO and the shares' long descent from $31 to as low as $3.55 a share. Those are just two of the more egregious examples.

One might assume the sovereign wealth funds would be a little gun shy when it comes to US investments, and for the past year most funds have retrenched. News in June, however, that CIC is looking to invest another $500 million into Blackstone suggests the ...

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