Temasek’s US equity holdings grew 2.1% to US$17.1 billion in Q4 2022, but down US$10.6 billion or 38% on end-2021 due to a combination of slumping stock prices and significant adjustments in a portfolio that had been relatively static.
The number of stocks in the portfolio was slashed from 95 at end-2021 to 72 at end-2022, signaling a major retreat from US public equities. The Singaporean state-owned investor made significant adjustments to its positions over the final quarter of the year as it sought to take advantage of the recovery in Chinese stocks as China’s draconian lockdown eased.
According to its latest 13F filing for end-December, the biggest increases in its positions over Q4 were Chinese e-commerce group JD.com, with Temasek raising its number of shares by nearly 440% with a total value of US$52.7 million, and biotech research company Denali Therapeutics, with its stake raised from 4.1% to 5.6% with a value of US$181.2 million.
Yet, on the whole, Temasek reduced its exposure to US public markets with reductions in shareholdings in 11 stocks. The biggest cut in Temasek’s position was in Brazilian digital banking platform Nu Holdings, with its stockholding reduced by 87%, although this equated to just US$3.2 million in the value of its shares. More significantly, Temasek slashed its holding in Lumen Technology by 56.1% with a US$355.7 million reduction over the quarter, while its stake in S&P Global Inc was cut 42.7% representing a US$205.6 million reduction. The Singaporean investor also reduced its position in an iShares US Treasury Bond ETF by 42.7%, with its stake declining US$116.5 million.
In some stocks, Temasek made notable gains and losses without changing the size of its stake. For example, it gained US$806.4 million from the surge in Blackrock’s price, raising the value of its shareholding by 29% to US$3.6 billion; Temasek remains the third biggest shareholder in the global asset manager with a 3.4% stake. Another success story was Temasek’s 3% stake in Chinese biotech company Beigene, which soared 63% to US$264.7 million.
Temasek’s shifting positions in US-listed equities have been accompanied by new appointments. In the past week, it announced a new deputy head of its North American business, Jane Atherton, to jointly lead its North America team alongside the region's current joint head John Marren. Meanwhile, Temasek's Deputy CEO Chia Song Hwee will oversee its investment activities in the wider Americas outside of North America. Meanwhile, its head of Americas John Vaske is leaving to become the new CEO of online agricultural platform Farmers Business Network (FBN), a Temasek portfolio company, as it plans its postponed IPO.
