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

FINalternatives Survey: We Asked Investment Pros...

Apr 2 2016 | 9:42pm ET

The data from our annual reader survey continues to roll in and provide interesting...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...