3/05/2009

GIC lost 25% on paper

The media quoted LKY saying that GIC's portfolio fell 25% from its peak and was managing only $150b. For the 25% fall, I will strongly recommend that GIC take out a couple of billions to reward the staff for such a scintillating performance. It has greatly outperformed the market indices which fell about 40%. On the second point of $150b, I am very puzzled. Why was it reported in so many media reports that GIC was managing something like $550b? This is not a 10 or 20% error. It was inflated by almost 4 times what GIC has. Now, which is the real number? No one should question LKY as he is the GIC Chairman and it was like words from the horse's mouth. Some may wonder how come GIC is managing a portfolio that much smaller than Temasek. But fact is fact. Would the reputable and highly reliable media do some ground work to confirm the facts?

7 comments:

Anonymous said...

Lost only 25%?
It was said by the Senior MOS Lim of Finance that GIC lost 41%.
And I think perhaps even more than 41% because she was quoting figures up to only Nov 2008.
The last two months Jan and Feb 2009 were worst than those losses prior to this period.
With the severe loss (write off) of GIC's shares in Citigroup, another probably $5.5 billion has been lost. And what about Temasek? Does Temasek also has a stake in Citigroup too?
I think probably the losses from GIC is about 50%, not 25%!

Anonymous said...

The wonderful thing about all this figures is that, now, nobody knows what the actual figures are.

And the other wonderful part is that, now, how much we actually lost is still up to people to continue guessing.

The horse just farted, but we thought the gas came out of the mouth.

Brilliant ploy!

Lost Citizen

redbean said...

it is a wonderful strategy to come out with all kinds of numbers. the beauty of it is that all the numbers may be right, depending on the parameters one is using.

Matilah_Singapura said...

Bullshit lah. They've lost more, and I congratulate them for it!

Citigroup belongs to the US govt now. They can and will inflate (dilute) the equity (thus reducing the owners' value even more), just like the US govt inflates (dilutes) the US currency by simply printing more money.

Govt intervention in the market has dire consequences, Now the SG.Gov gets jacked by the world's most powerful and internationally interventionist govt... man, that is soooo sweet lah. I'm celebrating this weekend!

I hope the US gov hantams the GIC and Temasek even more. Go Obama Go!

Anonymous said...

May it is the same case as in LSS's MP attendance - miscommunication.

But since GIC is not that transparent, it's difficult to prove they've got the numbers wrong.

Anonymous said...

you mean all GIC paid staff really shut their mouth and not even wimper abit IF this was not true coming frm a man who takes pride to protect his history..

Hello - is it $500 billion or $150 billion...

Who cares, i am getting old and have nothing to lose anymore.. i will say anything to protect my country...

redbean said...

what is the tooth?