Hedge Funds’ Greek Bets Prove Profitable

Mar 3 2010 | 5:34am ET

As the Greek government prepares to impose austerity measures to keep its economy afloat, hedge funds are growing fat on the country’s troubles.

Hedge funds have turned big profits shorting Greek debt and offering insurance to overexposed European banks, the Finance Times reports. A handful of big firms correctly anticipated that the banks would drive a wave of selling against Greece.

“There are a group of funds, perhaps three or four, that have played this as a huge sovereign basis trade, and made a lot,” a strategist at a top London hedge fund told the FT.

Hedge funds’ Greek positions have unleashed a new wave of recriminations against the industry in Europe and a Federal Reserve probe in the U.S.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note