Tue, Aug 4, 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. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  2. Activist News - Celgene says patent-fighting hedge fund manager wants to short its shares[more]

    From Reuters.com: Celgene Corp, one of the world's largest biotechnology companies, has accused U.S. hedge fund manager Kyle Bass of attempting to profit from his attempts to wipe out several major drug patents through his Coalition for Affordable Drugs. The company asked the U.S. Patent and T

  3. Einhorn's Greenlight Capital hedge fund slumps 6.1 percent in July[more]

    From Reuters/Thefiscaltimes.com: Hedge fund mogul David Einhorn's Greenlight Capital slumped 6.1 percent in July and is now down 9 percent for the year after gold, one of the fund's top holdings, tumbled to five-year lows last week. Greenlight notified clients of its returns late on Friday, ac

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner