Temasek spent billions on US tech stocks before July sell-off

Singapore’s investment company Temasek spent billions of dollars in the second quarter buying shares in US technology giants, just before the sector dropped in July.

Temasek increased the value of its holdings in 11 big tech firms by US$3.3 billion (S$4.35 billion) in the three months ended June 30, according to an analysis of its two most recent filings.

The vast bulk of the increase – some US$3.2 billion – went into six of those firms: Microsoft, Apple, Nvidia, Alphabet, Amazon.com and Meta Platforms.

By the end of July, however, most of those companies saw their stocks slide amid concern about the extent of artificial intelligence-related gains and fears of a recession.

Alphabet’s and Amazon’s share prices have fallen by about 12 per cent since the end of June, while Microsoft’s are down around 7 per cent over that period.

The Straits Times understands that this trade could have been done in April and May, and the position would still be up despite the July tech sell-down.

Many of the tech shares held by Temasek have started to recover this week, and it is unclear how it has invested since June 30.

The firm may have made gains depending on its purchase price, sold right before the fall, or even snapped up more as the shares declined in an effort to buy the dip.

With a net portfolio value of $389 billion as at March 31, the purchases would have represented around 1 per cent of its total holdings.

When contacted by The Straits Times, Temasek declined to comment.

The multibillion-dollar buying spree underscores Temasek’s commitment to ramping up investments in the United States, which it said in July would be the largest destination for its capital, with plans to invest US$30 billion over the next five years. BLOOMBERG

• With additional reporting by Sue-Ann Tan