Singapore’s Sovereign Fund Temasek Loses $4.6 Billion In Bank Of America Investment

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Singapore’s Sovereign Fund Temasek Loses $4.6 Billion In Bank Of America Investment

By Bill Cara on May 15, 2009 | More Posts By Bill Cara | Author's Website

We questioned at the time the appropriateness of various sovereign wealth funds investing massive sums in the equity of Humungous Bank & Broker (HB&B) at the long-term cycle top in 2007 and early 2008. By now, the results are obvious.

Bloomberg reported today that Singapore state-owned Temasek Holdings, which had paid $5.9 billion to buy a 3.8 percent stake in Merrill Lynch at various times since 2007, later took a loss of $4.6 billion on that investment. In less than 18 months, Temasek sold the position in 1Q2009 for $1.27 billion.

http://www.bloomberg.com/apps/news?pid=20601103&sid=ag29caaNeCls&refer=us

Buy high; sell low.

With investment wizards like theirs on board, is it any wonder why US Treasuries have been such an easy sell?

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