That engine has a recirculating cooling system. Until the stat opens the vast majority of the water is returned to the waterpump
As for why it might be running hot...
Clogged cooling passages
worn water pump(there are other parts that wear out besides the Impeller)
Incorrect ignition timing
Lean carburation
Wrong spark plugs
Wrong oil or wrong mixture
Exhaust is getting into the cooling system, instead of the reverse