Third Point Plans Greece Fund

Apr 11 2013 | 12:59pm ET

Third Point's remarkable returns last year and this have been fueled in no small part by its bullish bets on Greece. And the New York-based hedge fund plans to increase its exposure to the troubled country with a new fund.

The Third Point Hellenic Recovery Fund will focus on Greece, seeking out "event-driven corporate situations," the firm told investors this week. The new fund will have the ability to invest in opportunities barred by the liquidity requirements of Third Point's existing hedge funds and will employ a draw-down structure, deploying capital as opportunities arise.

Despite Greece's ongoing difficulties, Third Point said it believes "more than ever" that Greece is primed for a turnaround—no small feat, given that its Greek bets helped Third Point return 21% last year and 8.5% this year. On the other hand, Third Point said its remaining holding of Greek sovereign debt was its worst-performing position last month.

"The Greek market is relatively small, but the nation is starved for capital," the firm wrote on Jan. 9.

Third Point will seed the new fund with less than 1.5% its $11.7 billion in current assets and will seek further outside capital from institutional investors, Bloomberg News reports.


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note