Emerging Markets Rout Is a Buying Opportunity, GIC's Lim Says

[cyclone]

Emerging Markets Rout Is a Buying Opportunity, GIC's Lim Says

By Klaus Wille  and Haslinda Amin
September 6, 2018, 9:23 AM GMT+8 Updated on September 6, 2018, 10:51 AM GMT+8

The rout in emerging markets presents a potential buying opportunity, according to the chief executive officer of Singapore’s sovereign wealth fund.

“As a long term investor, we are not too perturbed,” GIC Pte CEO Lim Chow Kiat said during a Q&A session at the Bloomberg Sooner Than You Think technology summit in Singapore on Thursday. “In some markets it will give us opportunities as well, in some companies or stocks, or even bonds that we like to buy. But the valuations were a bit stretched. Perhaps now is a better time.”

While some emerging market countries are “experiencing difficulties” most of the factors are “idiosyncratic” rather than “systemic,” Lim said.

Separately, Lim said GIC has “some concerns” with increasing tech valuations.

“But we still are able to find some really good businesses, really good entrepreneurs, in spaces or areas where there are still significant opportunities,” he said.

Singapore’s state fund has been an investor in technology since its founding in 1981. The investment firm started investing in venture capital funds in 1986, when it opened its office in San Francisco and buys into technology across all stages of a company’s life. Among its larger tech investments are interests in Alibaba Group Holding Ltd. and smartphone maker Xiaomi Corp.

More details in https://www.bloomberg.com/news/articles/...emium-asia

[Bibi]

I think they made similar comments when they invested in western banks ubs, citybank during the global financial crisis.

[Big Toe]

2 points.

1. When GIC or Temasek bought into the US Banks in the middle of the sub prime crisis, they probably did not have a clear understanding of how dire the situation was or how bad it would eventually become. They sold at a significant loss if memory serves me right, probably triggered by a cut loss strategy or was under too much pressure as it had fallen too much, too fast. Hindsight is always perfect, but they could have done it very differently to have a much more positive outcome.

2. There is nothing to be disturbed about when your skin is not in the game. Heads I win more, Tails I win slightly less. Respect should always be earned, i.e. self made businessmen and investors. If you are good in what you do, generally you do not need to be stuck in a company and take instructions from a hundred people or explain your rationale constantly.

[TTTI]

“Long term investor”.... “we are not too perturbed”.....
Long term investor huh...
Of course he’s not perturbed.
But I am.
And all Singaporeans should be.