Tue, Jan 24, 2017
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

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. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised