Factual errors in MM Lee's figures on Harvard endowment fund

[Avantas]

MM Lee defended GIC’s disastrous performance in an interview with Reuters 2 days ago as ’slightly better than Harvard’. (Read article here)

The Straits Times reported that Harvard University’s endowment fund likely fell about 30 per cent last year, while Yale University’s endowments have seen double-digit declines.

MM Lee revealed that the investment portfolio managed by the Government of Singapore Investment Corporation (GIC) has lost about 25 per cent of its value from its peak last year.

We do not know what was GIC’s “peak value”. Bloomberg quoted a figure of “S$300 billion” dollars though it was not mentioned if this was the “peak value”. Using the limited information available to us, GIC may have lost up to $75 billion dollars. (Read report here)

Now, those trained in finance and economics will be know that the performance of a fund is judged solely by its gains and losses. We have yet to see an accounting measure that takes relative performance into account and so it is really irrelevant to quote the performance of another fund to defend one’s own miserable record.

Still, MM Lee is factually wrong on two counts:

Read rest of article here:

http://wayangparty.com/?p=5979

 

[commoner]

GIC Investment portfolio is US$200 bil, so 25% totalling US$50 bil is about right.

Why compare to Harvard? Why not Warren Buffet? Oei Hong Leong? maybe Donald Trumps who filed Chapter 11.

Aiya,,,, Singapore Minitoots always find convenient to compare whoever, whatever they like and make them looks good,,, LKY is no exception,,,, he beginning to look like those minitoots he employs liao,,,, stopid stopid,,,

 

[Porfirio Rubirosa]

I don't see the relevance of any comparisons, PAPs are using such comparisons as a smoke screen to cover up for their huge whopping boo boos in the financials.

LKY/Tony Tan/Ng from GIC should be held to public accountability as to whether they exercised reasonable due dilligence before buying into UBS, Citi same standard should apply to Ho Ching at Temasek viz Merrill, Barclays etc.

LKY and familee and so called A team who claim to be the best in Singapore and demand the best pay and get it, have to demonstrate why it now appears that they were taken to the cleaners by these Ang Moh financials.

LKY and gang have now been effectively shown up as mere "mortals" contrary to what people like Pappy Charles Chong would have us believe.

 

[commoner]

LKY and gang when faces big losses, what they use to smoke screen...

1. comparison to other worse performance entity
2. long term investments like 30 years, so when they no longer around, who cares
3. non-transparency rules like national secret
4. past track records like 19% annual nominal US$ return (whatever it means)

will they ever face true accountability. with their pattern like that,,, Never

 

[Einfield]

I don't see the relevance of any comparisons, PAPs are using such comparisons as a smoke screen to cover up for their huge whopping boo boos in the financials.

Want to compare?

China 09 GDP forecast 8%, worse case 5%
SG 09 forecast -10%,worse case -20%

 

[Meltdown]

MM Lee defended GIC’s disastrous performance in an interview with Reuters 2 days ago as ’slightly better than Harvard’. (Read article here)

The Straits Times reported that Harvard University’s endowment fund likely fell about 30 per cent last year, while Yale University’s endowments have seen double-digit declines.

MM Lee revealed that the investment portfolio managed by the Government of Singapore Investment Corporation (GIC) has lost about 25 per cent of its value from its peak last year.

We do not know what was GIC’s “peak value”. Bloomberg quoted a figure of “S$300 billion” dollars though it was not mentioned if this was the “peak value”. Using the limited information available to us, GIC may have lost up to $75 billion dollars. (Read report here)

Now, those trained in finance and economics will be know that the performance of a fund is judged solely by its gains and losses. We have yet to see an accounting measure that takes relative performance into account and so it is really irrelevant to quote the performance of another fund to defend one’s own miserable record.

Still, MM Lee is factually wrong on two counts:

Read rest of article here:

http://wayangparty.com/?p=5979

Why compare to losers like Harvard and Yale when all they know about finances is awarding undergrad students with Bachelors Degree In Finance which is BS!!

Why not compare to winners like Jim Rogers and Robert Kiyosaki?