Friday, 27 November 2015
Last updated 1 day ago
Jan 17 2013 | 1:45pm ET
A new hedge fund betting that Greece had hit rock bottom has been spectacularly rewarded for its faith in the troubled country.
Dromeus Capital isn't the only hedge fund to make a killing on Greek long bets; Falcon Edge Capital, GSO Capital Partners, Perry Capital and York Capital Management have all done so, and Third Point's big bet on Greek sovereign debt earned it a tidy 100% return and contributed to its 21% return this year.
But since Dromeus new Greek Advantage Fund, which raised about €200 million, invests exclusively in Greece, its returns have been even more dramatic: The fund rose more than 40% during its first three months of operation, through December, the Financial Times reports.
The new fund began trading in October, with Dromeus CEO Achilles Risvas calling the bottom of the Greek market. His thesis was that Greek stocks and debt had been so beaten down during the financial crisis that they had nowhere to go but up. Dromeus is sticking by that story into the new year.
"We remain strong believers for further repricing in Greek fixed income and selected equity assets," Dromeus wrote to clients.
Still, the firm warned that there remains tremendous uncertainty in Greece, especially political uncertainty. But Dromeus said it was taking those risks into account and selecting its investments carefully.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…