Wednesday, 26 October 2016
Last updated 9 hours ago
Aug 29 2014 | 7:37am ET
The Baupost Group rid itself of substantially all of its investment in Portugal’s collapsed Banco Espírito Santo before the bank went under earlier this month.
The hedge fund had built up a 2.27% stake in BES by the beginning of July. The bank, which had been hit hard last year by news of financial irregularities, went into bankruptcy and was rescued by the European Union in early August, ensuring that shareholders will be wiped out.
Baupost had dumped most of its stake days earlier, transferring a 2.15% stake to subsidiary Baros S.a.r.l. which, in turn, sold all of it on July 31—a day after BES announced a €3.5 billion loss.
It is unclear how much Baupost lost on its BES investment.