Hedge funds see Greek end game approaching
Hedge fund managers looking to profit from corporate announcements such as mergers and acquisitions are scaling up their bets in Europe, confident that a resolution of the Greek debt crisis is near and will spark an increase in deal-making.
A conclusion to the long-running Greek debt crisis, whatever the outcome, would remove one of the big obstacles to deal-making in Europe and unlock billions more in corporate cash.
“The only thing holding us back is this dance still going on for Greece,” said Reade Griffith, co-founder of Polygon, who manages one of the biggest event-driven hedge funds in Europe.
A recent Reuters poll indicates a one-in-three chance of Greece reaching a deal with its creditors.
John Melsom, who manages $60 million in Omni Partners’ Omni Event Fund, said investors were becoming more confident that the Greek crisis will be manageable.
“If they set a precedent how to manage the Greek situation and keep them in the eurozone, I think that will give people a lot more certainty and you will see a lot more deals.”
[Reuters]