Third Point Turns $500M Profit On Greek Debt

Dec 19 2012 | 11:29am ET

Third Point's Dan Loeb was so sure that Greece wouldn't be dumped from the eurozone that he bought up US$1 billion in Greek sovereign bonds. And in the wake of Monday's debt buyback deal, which paid 34 cents on the euro, he's got 500 million reasons to smile.

Loeb reportedly started buying up Greek debt some months ago at just half that level, according to the Daily Telegraph. And with the debt buyback complete and Greece's debt rating improved by a full six notches, Third Point has turned a $500 million profit on the bet.

Third Point tendered most of its bonds on Monday. But Loeb isn't giving up on Greece, holding on to some of the bonds in the belief that they could rally next year, the Financial Times reports.

New York-based Third Point, which has $10 billion in assets under management, was already up 17% this year through November, a number sure to rise substantially on the Greek win.

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