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Future Fund to get serious about $40b funding

Discussion in 'Investing Strategies' started by Simon Hampel, 20th Jun, 2007.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    If you think coming up with an investment strategy for your own money is difficult ... imagine how tricky it would be with $42b to invest (and an expectation of success!!!).

    Interesting interview of Paul Costello (Future Fund general manager), by Alan Kohler.

    Inside Business - 17/06/2007: Future Fund to get serious about $40b funding

    (includes video)

     
  2. bundy1964

    bundy1964 Well-Known Member

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    Seems someone has been spending some major cash last couple of days.
     
  3. Insight

    Insight Brisbane Buyers Agent

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    Far out, that's a super whale in the futures market, it's a really thin market as well so I'm not sure what their idea is? Buying contracts? I would like to learn more about the rationale behind that move.

    Dumb question... But where does the 40+ billion come from? Is that money sitting in consolidated revenue somewhere at the moment?
     
  4. Insight

    Insight Brisbane Buyers Agent

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    The fund declined to comment that it was buying contracts in the futures market. Had to laugh when I read that, it's a 'would you like to lose your job?' type of question.
     
  5. bundy1964

    bundy1964 Well-Known Member

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    Most of the money has come from T3.

    Seems fairly small when you consider what China is doing presently.

    The experts say that money is going to be looking for a new home soon.
     
  6. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Actually the T3 money is additional to the $40b ...

     
  7. bundy1964

    bundy1964 Well-Known Member

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    If they go the balanced route thats $17B Australian Shares and around $5B in property of which at least 1/3 would be local. plus the other long/short and futures options they have.

    Thats like adding another Coles to the market place. There has been a lack of bad news too coming into the 2nd reporting season of the year on profit downgrades with only MTS feeling bearish coming to mind. Rest of June and July look like they will be interesting times.