Thu, Mar 23, 2017
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. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  2. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  3. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  4. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  5. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He