The foundation set up by the Microsoft founder owns 66 million shares in the fund or 0.6% of its capital, according to Bloomberg data and the foundation’s 2014 report. The investment is valued at about 53 million lei ($12 million), according to the latest Fondul Proprietatea quotes.
The investment is surprising since the Bucharest Stock Exchange is a frontier market and liquidity is an important criterion major funds look at when considering investments. With the investment in Fondul Proprietatea shares, the Gates Foundation took exposure to Romania’s economy’s strategic sectors, considering the main companies the fund owns shares in are OMV Petrom, Hidroelectrica, Romgaz, Bucharest Airports, Posta Romania and banks – BRD and Banca Transylvania.
Fondul Proprietatea’s shares are the most liquid on the Bucharest Stock Exchange. Established in 2005 as a vehicle to compensate former owners whose properties had been seized by the communist regime, the fund floated in Bucharest in 2011. Its shares have gained more than 25% since then. This does not take into account dividend payouts or the share buybacks done by the fund.
Fondul Proprietatea’s largest shareholder is US hedge fund Elliott Associates, which owns 20% in it.
(English version by Loredana Fratila-Cristescu)