Fri, Jul 3, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds see opportunity in Greek debt crisis

Thursday, June 23, 2011

Robert Marquardt
Opalesque Industry Update – Hedge fund managers attending the annual GAIM conference in Monaco agreed that the worsening Greek debt crisis is an opportunity to make profits, although political uncertainties certainly make it a risky proposition provide risks, various media reported.

Hedge fund executives said the Greek debt crisis provides money-making opportunities, but emerging markets remain a safer haven.

Robert Marquardt, founder of fund-of-hedge-funds firm Signet, was quoted by India Times as saying: "It's certainly a great chance to make money, from the perspective that it's dynamic and rapidly changing, but the political risk is huge. With some Greek debt trading at 40 cents on the dollar, you can assume that recovery value over one or two years will be greater than that. You can hedge that by being short Spain or Portugal -- somewhere that's not really in play."

The comments came after Greek Prime Minister George Papandreou survived a confidence vote on Tuesday after the European Union issued an ultimatum to the Greek government to initiate reforms or lose a €12bn ($17.2bn) aid tranche it needs to avoid going into default.

In the same conference, private equity managers said they were also seeing opportunities.

Veteran venture capitalist Jon Mouton for example told participants of the conference that the crisis has significant impact on European banks.

He was quoted by The Telegraph as saying: "If Greece defaults, whether now or in one year or so, there will be a real chaotic period and all kinds of opportunities will surface you hadn't really thought about. Plausibly, that will result in a lot of financial institutions finding themselves short of capital, and you'll find quite a few things being sold rapidly, and private equity would have the funds to play when other people don't."

Moulton explained that as the balance sheets European banks starts to shrink, hedge funds could take this as an opportunity for their money-making ventures."
Komfie Manalo

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. 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

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. 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

 

banner