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FTX only 0.09% of Temasek’s portfolio?

In a statement issued early Thursday, Nov. 17, Temasek said the total cost of its investment in FTX was 0.09 per cent of its net portfolio value of S$403 billion as of end March 2022.

People need to know this, the lost of US$275 millions does not represents the 1% loss in total invested money. In fact it should not use portfolio to obscure the actual loss of money, and doing so is generally done to deceive and pacify the public.

To understand, portfolio is not the actual cash value because it compose of stock, share, asset, of each cash is one of them etc, but usually investors invest in those companies expecting and giving ridiculous high evaluation of a company, so they have inflated share/stock.

So lets say,

TH take US$2 billions of taxpayer money to invest in companies.

For each investment into companies ( 100 million) to get at least 10-30x over-valuated share rice, stock price, suddenly a company that in actual worth $10 millions is now worth $300 millions (30x valuation), and those share price hold by TH is worth by $30x (now you know why $403 billions portfolio is just inflated and it is not relevant), but that does not reflect its actual value, but inflated value. Inflated value is not accurate because it is value to make the invested companies look good.

Needless to say, the actual loss is the actual money that was pump into companies and writeoff to zero, against the total invested money of portfolios.

So it the actual loss is US$275m/US$2b = 13.75% loss of invested money, not the bullshit so called 1 percent. So TH use inflated portfolio value against the actual loss of invested money, where it should have used the total invested cash into companies instead.

 

Carlu

* Escalated from a comment on TRE. Edited slightly for clarity.

 

 

yyy
READER COMMENTS BELOW

19 Responses to “FTX only 0.09% of Temasek’s portfolio?”

  • Bad decision:

    It is not the amount.
    It is the decision that is a concern.
    No proper due diligent and a bad decision to invest in such a scam company.

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  • Err… may not be entirely true lor.

    IMHO, Temasick probably has a large part of its portfolio in private equity, which is arguably, quite subjective and maybe even conservative when it comes to valuation, so the percentage may not be 30x.

    But then hor, for normal understanding to a lay person like me, what the writer wrote is generally correct, the idea and message are there.

    @Bad decision

    I just realised that Temasick also has investments in Binance, the 2nd largest exchange after FTX. Heard the owner Zhao was a PRC-born Canadian and is now a Sinkie PR or maybe a Sinkie liao. He is also a substantial shareholder of Twiter which was recently acquired by Elon.

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  • bolly:

    The writer just states the example for TH, as not all the invested companies have evaluation of 30x, some between the range of 10x to 30x (or whatever multiple), but the main thing is to get the idea of why we should be critical of statement and not merely take it as face value as in the case of TH statement. Companies that have made loss will always downplay the loss and find ways to obscure the loss by meaningless comparison.

    For example, in this case, the question is why TH is using invested money for a company to compare against the overall portfolio value which don’t make sense as the invested amount will always be lesser than the total overall portfolio value. If want to compare, compare apple against apple, orange against orange, and not apple against durian.

    I fear it is this kind of mentality that may be the reason why TH seems recklessly throwing money here and there which is more akin to gambling (remember they play high risk), and losing large sum of taxpayer money and is nonchalant because they insist that the loss should be compared against overall portfolio value, berating the public for not having sense of proportion.

    Always be careful of companies having ridiculous high valuation, because usually these companies don’t deserve such valuation, and investment companies tend to invest in these companies because of high valuation and those management’s commission, bonus and pay or whatever you call is linked to those valuation, and having large portfolio value make the investment companies look impressive, and also help to obscure the loss of investment money.

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  • Asd:

    I think down the drains and fill own pockets no accountability is worst than WP proposal to using reserves on citizens

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  • Asd:

    I think independent does not mean no accountability where is the openess why hide and hide which is unbeing of educated scholar

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  • xoxo:

    Seems TH prefers to invest on *outsiders* using sgs’ money.
    Thats why our SMEs remain very much domesticated in nature.
    Its akin to the G preferring FTs,even those armed with Fake Degrees,to sgs.
    Guess sgs shud reciprocate by voting for *OUT-sider* candidates,those sgs NOT OF PAP flock of $heep?

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  • Don’t bullshit:

    Off course. Small %……….why?

    Cause this is divided by billions………………none the less the LOSS IS STILL US$275 Billion.

    This amount can build blocks and blocks of free BTOs for Sinkies!

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  • NotMyProblem:

    Once a reporter asked the 1G Finance Minister why he was frugal using taxpayers money, his reply was “… because it was not my money!”

    Now it is different, the PAP government can spend taxpayers’ money any way it likes!

    If any reporter was to ask now, the 3G minister would reply “.. not meaningful to disclose ..” or “.. what’s the point of your question ?”. Maybe to justify, “.. it was only a small %age loss..”.

    Well with a blank cheques given to them by the 61%, what could we do now? Just hope we are not that stupid the next time!

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  • Trapped in the Past PAP:

    Is it acceptable TH lie under licence – depends on how one interprets lie how a lie can be described in context.

    I can’t say TH lie or not then without contradicting myself.

    I would say TH is CORRUPTEDLY trying to mislead and mislead and mislead via playing with words and elective influencing mass understanding

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  • Soccerbetting2:

    Reported on Straits Times -”GIC invested in parent firm of troubled crypto broker Genesis, expects high volatility in short term

    When asked about GIC’s investment in Digital Currency Group, the sovereign wealth fund said it does not comment on individual investments, adding that it expects investments to remain highly volatile. PHOTO: GIC
    Claire Huang
    Business Correspondent
    UPDATED 7 HOURS AGO
    FacebookWhatsApp
    SINGAPORE –Singapore sovereign wealth fund GIC, which is an investor in the group with ties to troubled cryptocurrency broker Genesis Trading, says it expects volatility in investments to stay high in the short term.

    Venture capital firm Digital Currency Group (DCG), which owns Genesis and asset manager Grayscale Investments, had raised US$700 million (S$963 million) in November last year from prominent investors such as Softbank, Alphabet’s CapitalG, Ribbit Capital and GIC….”Unquote.

    Response :GIC is clearly controlled by the Singapore just as Temasek is.And all these GIC and Temasek are using our public funds investing in super risky crptocurrencies and Temasek is making over USD$275 millions of losses and GIC is now in trouble too ! When cryptocurrencies are super unstable products,don’t play with our public funds ! And isn’t Halimah Yacob as President,supposed to check on our reserves,still so “diam diam” and refuse to call out for a total investigations of how much our reserves is gone !Why ?

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  • xoxo:

    I hazard the inve$tment$ made on those CRAPto companie$ propo$ed by FTs working at Tema$ick HOLE-ding$?

    Why so quick to pour Billion$ into such CRAP$ N THOSE *TOO BIG TO FAIL* ANGMOH BANK$ BUT CANT HELP OWN SG COMPANIES that require much smaller sums of money to *revive*,for eg,HYFLUX???

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  • xoxo:

    This FTX reminds me of DBS’s TOP FT-management personnel from Damn Blardy $tupid Bank(DBS) PEDDLING LEHMAN MINIBOMB$ to ignorant sgs some years ago.
    MANY LOCAL DBS staffers from lower mgt rungs got fired for $ENIOR MGT’s WRONGDOING when DISRUPTOR KOH BOON HWEE was roped in as Chair?
    That was SINFUL.
    The CEO got richly compen$ated and *retired* much later after MANY LOYAL LONG-TIME lower mgt staff were replaced by FTs(at same or higher levels)?

    And,the rea$on,COST CUTTING???
    WHAT WAS KOH BOON HWEE trying to say?
    Cost-cutting by paying more?
    Must be an IDIOT this *KILLER* !

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  • xoxo:

    This firing of lower mgt staffers reminds one of how the lowly drug pushers get punished ,even hanged,while the KINGPIN get enriched and may even wine and dine with judges and high-ranking officials like nothing has happened?

    Justice?
    Only at the end of LIFE’S TUNNEL…

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  • MarBowling:

    Soccerbetting2:
    November 25, 2022 at 3:33 am (Quote)
    Reported on Straits Times -”GIC invested in parent firm of troubled crypto broker Genesis, expects high volatility in short term

    When asked about GIC’s investment in Digital Currency Group, the sovereign wealth fund said it does not comment on individual investments, adding that it expects investments to remain highly volatile.

    Response: another sup sup the water LOSS. This time by GIC(hummed oops helmed by Mai Hum)another one of our 2 SWFs. Let’s move on!

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  • Fraud and Delusion:

    ”Charlie Munger says crypto is a bad combo of fraud and delusion — ‘good for kidnappers’”
    So why are taxpayers’ monies invested in ‘FRAUD AND DELUSION”
    Can papigs give us a meaningful answer;or is it not meaningful to answer.
    ‘Not meaningful’ to provide costs breakdown of new HDB flats: Indranee”

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  • finding an excuse:

    But people are not stupid. Be 0.09 or 0.0000009, SGD400million is big sum of money that can provide free medical to elderly for some years.

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  • Soccerbetting2:

    Watch this Tik Tok link on Temasek and its losses -”https://vt.tiktok.com/ZS81gpUde/”.

    Few hundreds millions losses,and nobody from Temasek need to be fired off and charged meh ?

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  • Soccerbetting2:

    Singaporeans better watch this Tik Tok -”https://vt.tiktok.com/ZS8JhyqDs/”

    The Russia/Ukraine war got crazier.One nuclear plant is being attacked and if exploded,the nuclear activity will be massive 10X more than ever .Hey,everywhere will be contaminated nuclear vegetables,nuclear fishes,nuclear pork,nuclear lamb,……And all Singaporeans will be stranded in Singapore mainland without food .If got,maybe contaminated,……

    Singapore better build a link suspended floating bridge from Punggol to Pulau Ubin and return way suspended bridge from Pulau Ubin to Pasir Ris and plant and rear animals and all our food supply in Pulau Ubin to secure more food supply .Else,if war comes and there is no food,Lee Hsien Loong better hauled out Grace Fu,minister of Substainability to be charged and send to jail !Don’t play play with Russia/Ukraine war.Both Koreans are firing at each other with missile.And China think Xinjiang is on fire recently killing three childrens due to covid lockdown. Shanghai maybe on riot too. Taiwan Tsai Ing Wen has resign at the right time due to lose election ! World is at a great mess ! And crypto currencies losses need investigations !

    Why Punggol build so many big white elephant projects of unnecessary gigantic pre-school,child care centre but essential things like a motor cycle repair and servicing centre is not even found in Punggol North East area ? And Punggol One hub open a hawker centre,large screen TV monitor showing free world cup matches but never provide free tit bits and drinks at night.At least must have a hot drink machine at night at Punggol One with a titbit machine to buy to watch world Cup.Too difficult to install ? What about massage chair can be install at Punggol One hub with so much space ?Instead of building things useful to use,the Yeo Wan Ling waste spend public funds installing huge banners -”Women support women” mad banners with no usefulness to the citizens !Pui!

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  • labby:

    “its net portfolio value of S$403 billion”

    always remember that these values are not real money, and when sold on market could may as well be worth $200 billions in actual money. Never ever trust all these portfolio value as these are there for show. Rarely portfolio investment are converted into their claimed highly valuated value when those invested companies are sold as they may have debt and liabilities that exceed the asset value. Ask yourself how many of these companies are acquired by large companies because they are too good to pass up (how many are like Whatsapp company) ? If not, it means those companies aren’t worth their valuation.

    One can’t say they have earned money until they have sold the share/stock as profit. Remember in this world, one can be millionaire/billionaire one day, and become a pauper overnight, didn’t we see it in world of tech ?

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