A year ago, a variety of sovereign wealth funds plowed billions into the U.S. financial services industry. Yes, it looked like the "smart money" was making a move. But, of course, it turned out to be a disaster.
Just look at Singapore's Temasek Holdings. The fund unloaded its 3.8% stake in Bank of America (NYSE: BAC). The loss? It appears that it's about $4.6 billion. The stock sales came between January and March.
And the overall portfolio of Temasek suffered a 31% plunge during an eight month period (as of the end of November).
What to do? Well, it looks like Temasek is moving aggressively into Asia. After all, there continues to be growth in the region, especially in China. In fact, this week Temasek boosted its position in China Construction Bank Corp. Funny enough, this was the result of Bank of America selling a chunk of its CCBC stake.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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