ECONOMY

Millionaire’s hedge funds back Greek bank

Funds run by billionaire investor John Paulson see Greece’s recapitalized banking sector as an attractive investment play on the country’s recovery after a deep six-year slump.

Encouraged by Greece’s rising exports and a rebounding tourism sector, US hedge fund group Paulson & Co expects the protracted recession to bottom out this year and begin recovery in 2014.

Paulson, whose moves are closely watched ever since he earned billions by betting against sub-prime mortgages, said in a statement: “We think Piraeus and Alpha, two banks we have a position in, are now very well capitalized and poised to recover. They have good management and we think the Greek economy is improving, which should benefit the banking sector.”

The Financial Times reported on Sunday that Paulson and other US hedge funds, including Baupost, Eaglevale, Falcon Edge, York Capital and Och-Ziff are investing in Greek banks, citing unnamed sources.

[Reuters)