Greek Hedge Fund Up 107%

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.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...