Singapore’s sovereign wealth giants GIC and Temasek are making significant changes to how they engage with hedge funds, moves that could influence billions of dollars of institutional capital flows across the sector, according to a report by Bloomberg.
GIC is undertaking a reorganisation of its external managers department, including a leadership transition and expanded hiring. Long-serving head Betty Tay is expected to retire from the role, with Kwong Hong Huat, formerly head of Asia total return public equities, stepping into position following his recent appointment as deputy director. GIC is also recruiting across multiple seniority levels within the team, signalling a renewed focus on external manager oversight.
The sovereign investor, estimated by Global SWF to manage around $936bn, allocates roughly 1.5% of assets to hedge funds, making it one of the industry’s most influential allocators. While GIC has not indicated whether its overall hedge fund exposure will change, the internal reshuffle suggests a potential recalibration of manager selection and portfolio construction.
Separately, Temasek is widening its engagement with hedge funds, reaching out to a broader range of managers than it has historically. The investor, which had a net portfolio value of S$434bn ($342bn) as of March, has traditionally deployed hedge fund capital through subsidiaries and affiliates rather than direct allocations.
Chief Investment Officer Rohit Sipahimalani said Temasek is increasing exposure to alternative and uncorrelated strategies, including multi-strategy and macro hedge funds, alongside private equity and private credit. Temasek disclosed last year that it invests with around 10 hedge funds, including Citadel, and expects double-digit returns from the portfolio.
From April, Temasek’s hedge fund investments will be managed under a newly created Temasek Partnership Solutions unit, part of a broader review of how the firm deploys capital externally.
The developments follow a strong 2025 for hedge funds globally, with Asian managers in particular benefiting from robust regional equity market performance. For hedge fund managers, the shifts at GIC and Temasek underscore evolving allocator priorities and renewed competition for capital from two of the world’s most influential sovereign investors.
