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Temasek's US holdings fell in third quarter amid stock rout

[SINGAPORE] The value of Temasek Holdings Pte's US listed securities fell to the lowest level this year as it sold some of its assets and the Standard & Poor's 500 Index slumped the most since 2011.

Singapore's state-owned investment firm reported US$10.5 billion of holdings as of September 30 in a filing with the US Securities and Exchange Commission on Monday. That's a decline of US$5.4 billion from the previous quarter and the lowest since the three months to December, when holdings were US$9.6 billion.

The US benchmark index fell 6.9 per cent in the third quarter amid uncertainty over the Federal Reserve's rate tightening policy and concerns that an economic slowdown in China will curb demand for commodities and crimp global growth. The loss was the worst since 2011 and the first back-to-back quarterly decline since that year. US stocks have recovered since the end of September, with the benchmark index climbing 5.4 per cent, amid expectations the Fed will raise borrowing costs in December for the first time in nine years.

The value in Temasek's holdings also fell because it cut some investments. The number of shares in Alibaba Group Holding decreased by 8.8 million to 48.1 million, according to the filing. The value of its stake dropped US$1.8 billion to US$2.8 billion as of September 30.

Temasek reduced its holdings in pharmaceuticals maker Gilead Sciences Inc by 9.4 million shares, leaving 11.4 million valued at US$1.1 billion, a decline of US$1.3 billion. The firm sold its entire stakes in several companies including Medtronic Plc, Oceaneering International Inc, Cognizant Technology Solutions Corp and ConocoPhillips, the filing showed.

Other asset managers also reported declines in the values of their US-listed holdings. Bridgewater Associates, the Westport, Connecticut-based investment firm led by Ray Dalio, reported a 31 per cent drop to US$7.47 billion. Billionaire Stan Druckenmiller's Duquesne Family Office disclosed its equity holdings fell in value by 41 per cent to US$868 million during the quarter.

Money managers who oversee more than US$100 million in equities must file a Form 13F with the SEC within 45 days of each quarter's end to show their US-listed stocks, options and convertible bonds. The filings don't show non-US securities or how much cash the firms hold.

Temasek is the ninth-biggest state investor with an estimated US$194 billion of assets, according to the website of Institutional Investor's Sovereign Wealth Centre.