ECONOMY

US investors plan creation of a Hellenic hedge fund

International investors are increasingly convinced Greece is about to emerge from its crisis and are eager to invest in the Greek success story, which would provide the local economy with some desperately needed capital when implemented.

Investor Daniel Loeb’s global fund management company Third Point LLC is proposing to its members the creation of hedge fund exclusively for Greece under the name Third Point Hellenic Recovery Fund, which will invest in local firms under restructuring (“event-driven corporate situations”) and in Greek assets. Loeb has earned billions of euros through his purchase of Greek bonds following the assurance of the eurozone in September 2012 that it would not allow Greece to crumble.

Bloomberg reported yesterday that in his quarterly letter to Third Point shareholders, Loeb stressed that he is convinced Greece will stage a dynamic recovery and that he intends to participate in the rebound both as a bondholder and through private equity investments.

“The Greek market is relatively small, but the nation is starved for capital and we intend to invest in strong enterprises run by talented groups,” the fund manager wrote. The Third Point Hellenic Recovery Fund will gradually release funds when investment opportunities arise. Among the investments it has examined is gaming company OPAP.

Third Point has reaped yields of 21 percent from Greek bonds whose price has risen considerably in the last six months, and joins US firms including Oaktree Capital Group LLC and Fortress Investment Group LLC in searching for bargains in Greek assets.

This comes in the same week as encouraging statements from US billionaire Wilbur Ross, the so-called “vulture investor,” who two weeks after his meeting with Prime Minister Antonis Samaras went on the record saying that Greece’s continued efforts to restructure its economy could again render it an attractive destination for investments.