StanChart: Ho, Ho, Ho on a wing and a prayer

In Banks, Emerging markets, Temasek on 20/05/2015 at 1:21 pm

Last yr when Temasek gave a media presentation on its results, the question on StanChart elicited a BS reply but which when viewed today tells a lot about Temasek’s strategy in dealing with dogs with fleas: “Everything will be alright in the long term”. Err remember Keynes said in the long run, we are all dead.

QUESTION: Could you give us some comments on how do you see StanChart performing in your portfolio because over the last few years, especially in the last year and a half and looking at the outlook as well, they seem to be finding it quite challenging and there was a profit warning as well. What is your plan for StanChart? Do you think that… is that something that you would like to exit in the long term or you would treat StanChart as another Olam where you could actually try to take over?

RS: So look, it’s obviously not fair for us to comment on individual companies but all I would say is that yes, a lot of our stocks go through volatility. Standard Chartered is an emerging markets bank and like all emerging markets banks, the stock over the last year has been quite volatile. We, however, see ourselves as long term investors, short term volatility doesn’t concern us. We look at our investments over a longer term and use our value test to decide whether what we do with those stocks and we remain as an active investor always engaged with the companies.

  1. It seems Mrs Lee has taken the kind ang moh Martin’s new year advice to her:
    Temasek should sit tight on troublesome stake in StanChart
    Even when nouveau rich uncles Industrial and Commercial Bank of China (ICBC) and Bank of China had approached Teamsek to buy out its stake in Standard Chartered.
    Mrs Lee is no doubt a world class engineer, unfortunately she has no formal financial traning nor experience except as CEO through guanxi.
    My humble free advice fo Mrs Lee is to dump all those useless stocks that she has accumulated and divert all the investment to Japan, the next success story; Germany :the country with solid track record and USA: the most creative country in the world.

  2. I bet all of the so-called fund managers at Temasek & GIC already long-time ago exited Stanchart from their own personal portfolios. Easy to be gungho and lackadaisical with OPM.

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