Thu, Oct 2, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Why it is possible to be bullish on Europe right now

Thursday, May 06, 2010

Benedicte Gravrand, Opalesque London:

Dietmar Schmitt, founder of a London-based boutique called SAM Capital Partners, which runs a European equity L/S hedge fund, is bullish on the European equity market right now.

Although, he wasn't feeling that way last week - when all was up in the air in Europe thanks to the uncertainty of the Greece situation.

"With all the rumours we had around the last 2 or 3 days, markets were holding quite well," Schmitt told Opalesque yesterday. "They're down only 3 to 4% - depending on the market you look at - except for Spain obviously which got murdered." Italy and Portugal too, to a certain extent.

The root of the current European problems, according to Schmitt, lies in the state finances. The banks are now "fairly" well capitalized compared to a year or two ago, so the problem is not really in their camp.

Right now, the focus is on the PIGS states (Portugal, Ireland, Greece, Spain). Indeed, European markets went down in the last few days even on news of the Greek bailout fund, as investors are concerned about a contagion effect reaching those fragile economies. Portuguese and Spanish bonds were negatively affected for example.

Germany's problem Although it is not really Germany's problem, Schmitt points out, it is, in fact Germany's problem. Everybody in Europe will suffer but Germany will share the biggest part of the bailout's burden because of the country's size and its GDP.

Ge......................

To view our full article Click here

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Legal - Court throws out lawsuits related to Fannie Mae, Freddie Mac profits, Insider case by SEC is a step removed from Herbalife itself, SEC grants Citigroup waivers, easing hedge-fund curbs[more]

    Court throws out lawsuits related to Fannie Mae, Freddie Mac profits From WSJ.com: A group of Wall Street investors on Tuesday suffered a blow in their attempts to sue the federal government over their treatment of the shareholders of mortgage finance giants Fannie Mae and Freddie Mac af

  2. Launches - Goldman Sachs Asset Management launches GS Long Short Fund, Western & Southern launching international hedge fund, Lansdowne Partners plans energy hedge fund, RBC Global Asset Management launches new RBC Funds (Lux) - Asia Ex-Japan Fund, PVE Capital latest credit strategy to launch on the Sciens managed account platform[more]

    Goldman Sachs Asset Management launches GS Long Short Fund From Marketwatch.com: Goldman Sachs Asset Management has announced the launch of the Goldman Sachs Long Short Fund, which pursues high conviction investment ideas in global equity markets through a fundamental, bottom-up approach

  3. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is

  4. Opalesque Exclusive: Institutions eye private credit over traditional fixed income[more]

    Bailey McCann, Opalesque New York: Investing in private insurance, realty tax receivables, or investment-grade short-term accounts receivable may not spring to mind as a means of mitigating risk in a portfolio, but one firm, New York-based BroadRiver Asset Management is out to change all that. Th

  5. Short-term trading quant fund beats S&P since '09[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A relatively new multi-strategy, market-neutral quantitative hedge fund has managed to outperform the S&P500 and the HFRX Global since 2009. New Jersey-ba