Japanese conglomerate SoftBank Corp (OTCMKTS: SFTBY) has posted a $21.6 billion quarterly loss on its Vision Fund, one of the highest in its history, in the wake of its takeover of British chip designer ARM Holdings Plc (LON: ARM) and aggressive investments in technology companies around the world. However, SoftBank’s CEO Masayoshi Son said that he is not bothered by the high losses, because they are part of a larger strategy to invest heavily now and reap rewards down the road. It remains to be seen if his strategy will pay off over time.

One of SoftBank’s Biggest Losses Came From its Vision Fund

SoftBank recorded one of its largest losses at its Vision Fund, an investment arm for the quarter that is plagued by difficult conditions for technology stocks amid increased interest rates.
The Vision Fund of the Japanese giant posted a loss of 2.93 trillion Japanese yen ($21.68 billion) in the June quarter. This is the second-largest quarterly loss the Vision Fund has seen in its history. That contributed to a loss of ¥3.16 trillion during the three-month period for SoftBank, in contrast to the ¥761.5 billion they made in the same period last year.

One of SoftBank's Biggest Losses Came From its Vision Fund
Image Source: Business Today

SoftBank’s Vision Fund, which began in 2017 and invests in high-growth technology companies, has been impacted by the rapid increase in inflation in response to U.S. Federal Reserve and other central banks hiking interest rates. Masayoshi Son, SoftBank’s outspoken founder, and the mastermind behind the Vision Fund said in May that the company would adopt a more conservative strategy after suffering losses totaling 3.5 trillion Japanese yen at its investment unit for the previous fiscal year.