The Wall Street Journal, 10 Nov 2008, Rick Carew
Ho Ching runs a portfolio of more than $134 billion at Singapore's state-owned investment firm, Temasek Holdings Pte. Ltd. And she is pushing Temasek, one of the world's most sophisticated sovereign wealth funds, further onto the global stage. Ms. Ho, who is the wife of Singapore Prime Minister Lee Hsien Loong, shook up Temasek's management after taking over as chief executive in 2004 and installing a new team of investment professionals culled from the private sector.
But her tenure hasn't always been smooth. Tax issues arising from Temasek's purchase of a controlling stake in Thai telecom firm Shin Corp. contributed to the overthrow and exile of Thai Prime Minister Thaksin Shinawatra in 2006. The company also has been accused of monopolizing Indonesia's telecom industry through subsidiaries. Temasek says the accusations are baseless.
Ms. Ho is now reshaping Temasek from an Asia-focused deal machine into a global heavyweight -- selling some Asian assets, setting up outposts in Latin America and buying into Western banks.
Temasek's portfolio will undoubtedly suffer from declining equity markets world-wide given its heavy weighting in banks. Ms. Ho's biggest challenge will be to steer Temasek through the global financial crisis and keep its investments afloat. She also will need to effectively use her new staff's global experience to find the right investment opportunities.
She dodged a bullet on a $5 billion investment in Merrill Lynch & Co. in December. A "reset clause" in the deal allowed Temasek to get a refund on the difference between the price it paid and the price new investors paid if Merrill raised more capital. That happened when Merrill tapped the equity markets in July. Ms. Ho now looks to break even or profit slightly on the investment given Bank of America Corp.'s purchase of Merrill.
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