Among sovereign wealth funds, candor is often in short supply. So we took note of the bold report from Bahrain that Mumtalakat was prepared to invest heavily in international projects. The news is a sharp reversal for an entity best known as a local flagbearer, with the step intended to reverse hemorrhaging portfolio returns. But the story here may be less about a modestly-sized state investor in Bahrain and more about institutional names recovering from outsized commitments to local projects. In a sense, the investment-strategy shift is like a twelve-step rehabilitation program. You have to admit that you have a problem and examine past errors before you can move forward. ■
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