Tue, Jun 30, 2015
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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  3. Hedge funds panic over Greece[more]

    Komfie Manalo, Opalesque Asia: Some investors are in panic mode as Greek Prime Minister Alexis Tsipras announced Sunday night that the banks and the stock market would be closed Monday, said

  4. Alternative investment industry could grow to $13.6tln in five years[more]

    Komfie Manalo, Opalesque Asia: Leading auditing and advisory group PwC said that the global alternative investment industry, which includes hedge funds, private equity and real assets, is set to increase to $13.6tln within the next five years. "Be

  5. Qbasis gets $200m-plus investment in 'black swan' hedge fund[more]

    From Reuters.com: A hedge fund that more than doubled clients' money during the 2008 financial crisis has attracted more than $200 million from an investor aiming to cash in on fresh ructions in global markets. Qbasis Invest has secured the investment from Britain's Omada Capital, Florian Wagner, wh

 

banner