Friday, 31 October 2014
Last updated 2 hours ago
Dec 5 2013 | 1:20pm ET
Greece still has some distance to go to recover from its crippling financial crisis, but it has bounced back enough to help a hedge fund focused on the country double its investors' money.
Dromeus Capital Group launched its Greek Advantage Fund last October, and in its first 12 months, has returned 107%.
"Launching our fund during that period of extraordinary uncertainty, not only for Greece but for the Eurozone as a whole, may have seemed a risky proposition," co-founder Achilles Risvas said. "It was certainly a non-consensus idea, but the low level of asset prices meant we were absolutely convinced that we had valuation on our side."
In one case, Greek bank warrants, Dromeus has enjoyed a 250% return, following the banks' recapitalization. The fund has also benefitted from some non-Greek investments, including in pianomaker Steinway Musical Instruments, which was bought by hedge fund Paulson & Co. And, Risvas says, there's further room to grow.
"Corporate earnings, economic activity, credit conditions and investor sentiment suggest that we are about mid-way through the trading cycle that follows an economic meltdown of the type that Greece has had to endure," he said.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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