FTX fallout: Does Temasek have to be on bleeding edge of tech to get best returns?

TEMASEK Holdings offered a fascinating window into its investment strategy when it issued an extensive statement about its exposure to FTX, the cryptocurrency exchange that imploded over the last few weeks amid allegations of mismanagement and fraud.

In particular, Temasek explained that investing in FTX was part of its effort to keep abreast of how new technologies and global trends might affect the returns generated by its portfolio.

“As an investor-owner seeking sustainable returns over the long term, we believe that we have to invest in new sectors and emerging, nascent business models to understand the applications and impact they may have on the business and financial models of our existing portfolio, or be drivers for future value in an ever-changing world,” Temasek said in the statement on Nov 17.