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

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...