Friday, 1 August 2014
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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.