atans1

Posts Tagged ‘Seatown’

Temasek: 4 senior departures in 9 mths

In Temasek on 24/07/2011 at 7:03 am

When there is an average of one senior departure every 2.25 months in a listed company anywhere in the world,  the board of directors and CEO are under a lot of pressure to explain the departures. Shareholders, investors and the media want to know if there is something amatter with the company, how serious is it, and what are then plans to fix the problem.

But when the company is Temasek (the SWF that invests our money), the board and CEO face no such pressure, it seems.

The CEO of Fullerton Fund Management, fully owned by Temasek, resigned in late October last year. His acting successor left in February this year. “Hsieh Fu Hua, a member of Fullerton’s board of directors and executive director and president at Temasek Holdings, will work closely with Fullerton’s chief investment officer and chief operating officer to guide the firm until a new CEO is appointed,” it was announced. http://www.reuters.com/article/2011/02/07/fullerton-ceo-idUSL3E7D702720110207

He is still there it seems. FYI, there are rumours that this unit which manages the money of foreigners suffered badly during the 2007/2008 financial crisis, and the recovery has not helped it much.

This week, two other units had leadership changes.

Charles Ong and Nasser Ahmad quit as co-CEOs of Seatown, the “hedge fund” of Temasek. But Ong is not leaving the Temasek group. Ahmad is reported as leaving to return to the private sector. http://atans1.wordpress.com/2011/07/19/reshuffling-the-chairs-aboardtemaseks-hedge-fund/

Then Francis Rozario resigned as CEO of Temasek’s Fullerton Financial Holdings, the unit that invests in Asian banks. http://atans1.wordpress.com/2011/07/20/temasek-loses-74-of-pakistani-investment/

Again like in the case of Fullerton Fund Mgt, their replacements are from the parent company.

Given the frequency of the changes, surely S’poreans should be told if these changes are a statistical fluke (like several 100-yr or 50-yr floods in the space of 12 mths), or if there is something amiss at the manager of our money?

Fat chance. Pigs will fly or Tan See Jay will get his COE or TKL will get elected as president before any explanation is given.

Reshuffling the chairs aboard Temasek’s “hedge fund”

In Temasek on 19/07/2011 at 7:08 am

Charles Ong and Nasser Ahmad are quitting as co-CEOs of Seatown, the “hedge fund” of Temasek reports Bloomberg.

Mr. Ong, who is also senior managing director of special projects at Temasek, will remain at Temasek. Mr. Ahmad will be returning to fund management.

For the record, Charles Ong was the point man on the Shin Deal that lost billions.

Related postings

http://atans1.wordpress.com/2010/02/22/temasek-the-significance-of-seatown/

http://atans1.wordpress.com/2010/03/06/better-at-destabilising-than-investing/

Temasek: the significance of Seatown

In China, Investment banking, Temasek on 22/02/2010 at 3:45 am

Seatown is Temask’s new toy: an absolute return fund. But with a reported US$3 billion available for playing in the pen:in the context of Temasek’s reported US$120 billion in assets, and the world’s biggest hedgies http://hedgefundblogman.blogspot.com/2009/08/top-100-largest-hedge-funds.html, US$3 billion is”Peanuts,” as Mrs Goh Chok Tong might say. Seatown doesn’t even make it to list of 100 biggest hedgies: the smallest of which manages US$4 billion +

So what is Seatown’s significance?

Since Ho Ching became its CEO, Temasek has done a series of big deals, taking controlling or strategic stakes in high profile companies like Shin, Merrill Lynch, Barclays, ABC Learning, Bank of China, China Construction Bank , Hana, ICICI Bank, NIB Bank, PT Bank Danamon Indonesia, and Standard Chartered.

Some were real dogs, others were good performers, and the balance were average performers.% of those still in its portfolio.

But whatever they were, the size of the investments meant that they could not be done discreetly. When things went badly, S’poreans knew, and knew whom they blamed.

It could be that Temasek will slow down Buffett-size deals, using Seatown to do lots of smallish deals that will not appear on the radar, and depending on rapid turnover (i.e trading) to make $. And if Seatown comes a cropper, US$3 billion is a rounding error. But if it does well, financial engineering will magnify its returns: supposing if Temasek funds Seatown from the proceeds of its recent bond issues, the cost of the capital could be “peanuts”, leading to great returns when calculated using the cost of these bonds. Or so I’ve been advised by the same people who tell me that SingTel should have taken an impairment charge (at least A$3 billion) for Optus and SIA for Virgin Atlantic (sum unknown but sure to be in billions whether in US$ or sterling).  And no they are not members of SDP, they are accountants’ accountants.

Moral of the story: don’t do a Buffett, unless you got a brain to match. Scholars, SAF generals, or FTs from top biz schools do not a Buffett make.

Maybe Temasek thinks that a Soros or John Paulson can appear from one of these  scholars, SAF generals, or FTs from top biz schools, though based on the exit from BoA (that bought ML), “Dream on baby”. John Paulson was buying as Temasek was selling.

And maybe the Chinese can teach Singapore Inc something. FT reports: “China Investment Corp, Beijing’s sovereign wealth fund, has agreed to invest $1.5bn in the private equity secondary market through custom accounts with three of the biggest specialists in buying second-hand buy-out and venture capital fund interests.

‘Lexington Partners, Goldman Sachs and Pantheon Ventures have each agreed to manage $500m for CIC through special accounts, which are to be kept separate from their main funds … The move is the biggest injection of capital into the secondary market.”

“It underlines how CIC is using its size to win special terms from private equity groups, including lower fees and transfer of knowledge on specialist markets … The era of big public pension funds and sovereign wealth funds accepting the same terms as smaller investors is over,” David Rubenstein, founder of the Carlyle Group, said.”

Outsource to the best, using wagga to get good terms.

But then the S’pore govmin is as mercantilist as the French.

Follow

Get every new post delivered to your Inbox.

Join 186 other followers