TCI hit by own wrecking ball as Sinolink investment turns sour
If you thought the famous 'wrecking ball' known as The Children's Investment Fund Management never caught its fingers in its own machinations, think again.
The London-based hedge fund, which became a household name in Hong Kong after taking a significant stake in the Link Reit, yesterday disclosed its money-losing investment in Sinolink Worldwide Holdings.
TCI sold 1.54 million shares at HK$1.67 each, 15 per cent lower than its HK$1.95 entry price 16 months ago, according to the stock exchange disclosure. The fund now owns less than 5 per cent of the mainland property counter and so is below the disclosure level.
In December 2005, TCI bought 6 per cent of Sinolink, controlled by mainland entrepreneur Ou Yaping, along with Value Partners, GLG Partners and PMA Management. The stock went to HK$3 after the deal but did not last long there and by June last year was down at HK$1.28.
While TCI's Hong Kong portfolio is still doing well, Sinolink is not part of its track record fund founder Christopher Hohn would be thrilled to talk about.
