Mon, May 28, 2018
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 - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven