Wed, May 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The Big Picture: Are European problems more political in nature than economic?

Tuesday, October 01, 2013

amb
Gene Salamon
An Opalesque column for global macro investors.

This paper was authored by Gene Salamon, Founder of Three Bridges Capital, an independent investment management firm based in New York City.

In my nearly two decades of investing in Europe I have never seen a more exciting time to be a fundamentally-driven stock picker. The severe de-rating of Europe over the past four years has created an unprecedented opportunity for investors. As the apocalyptic tail risk fears created by macro headlines emanating from the periphery of Europe fade, investors are finally able to look directly at the region’s underlying companies and recognize their healthy profitability and depressed valuation. And, after six years of weak economic and financial data, Europe is finally in recovery mode. Although it will unlikely be a global growth engine any time soon, a stable to gradually improving economy adds further momentum to the potential for fundamental stock picking throughout the region.

How did we get here?

While Greece has been the primary focus of scary European headlines in recent years, the crisis actually began in Dubai. On the 26th of November 2009, Dubai World, the investment vehicle for the Emirate, proposed to delay for six months a payment on $26 billion of debt, raising the risk of the largest government default since the Argentine debt restructuring in 2001. The news spooked markets gl......................

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. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. 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

  3. 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

  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