Greek Hedge Fund Up 107%

Dec 5 2013 | 2:20pm 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.


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