Singapore Sovereign Fund Founds Possible Hedge Fund Firm

Feb 10 2010 | 10:30am ET

Singapore’s sovereign wealth fund has established an investment firm that could become the largest hedge fund manager in the region.

Temasek Holdings’ Seatown Holdings is expected to have some US$3 billion in investment capital. The new firm—whose name is English for “Temasek”—will specialize in emerging markets funds and assets classes in which Temasek has not invested in the past. But Asian Investor reports that Seatown could be a massive hedge fund platform, the first ever set up within a sovereign fund.

The new firm is expected to employ a multi-strategy approach, according to AI. Bloomberg News also reports that the firm will be an absolute return shop.

Still, Temasek is remaining tight-lipped about the new firm, other than confirming that it exists, and a Reuters source is contradicting other reports.

“It is an investment company and it is not a hedge fund,” the source said.

Seatown reportedly already boasts a core staff, led by Charles Ong as CEO. Ong has been with Temasek for eight years, following a career that took him through Lazard Freres and Deutsche Bank. The new firm also features Nasser Ahmad, formerly of New York hedge fund DiMaio Ahmad Capital, as co-CEO. Margaret Lui, currently managing director of investments at Temasek, was named the new firm’s chief operating officer.

In addition to investing the city-state’s own assets, Seatown will eventually open its doors to Singapore’s citizens, allowing them to co-invest with the sovereign fund.

Seatown is Temasek’s second investment subsidiary. It already runs Fullerton Fund Management, which specializes in long-only investments but also invests in hedge funds and funds of hedge funds.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…