Back in 2013 and early 2014, there was money to be made in Greece. Greek bonds went from 12 to 60 cents on the dollar and the emboldened hedge fund fund managers who bought them up became rich indeed. “People made their careers on that trade,” George Linatsas, founding partner of Axia Ventures, an investment bank that specializes in Greece, Cyprus, Portugal and Italy, told the New York Times. .
Eighteen months later, and the career trade has turned sour. The NYT says the swanky ‘Hotel Grand Bretagne’ in Athens is filling up with panicked hedge fund investors in their 30s who’ve made a bad mistake. Until last weekend, their efforts were reportedly focused on trying to work out exactly what the Greek government was up to. – Some were ‘listening to Greek radio’. Others had hired specialists to study the body language of Alexis Tsipras and Yanis Varoufakis. Now that Tsipras’ and Varoufakis’ intentions are clear, the young hedge fund managers can at least save that expense. Unfortunately, it may be too late to redeem their careers.
Separately, with equity markets likely to fall on the Greece news, what better time to work for a fund-raising team that specializes in private finance? Financial News reports that so-called ‘private fundraising teams’ are becoming a thing. Deutsche Bank, UBS, Bank of America and J.P. Morgan have reportedly recently set them up, while Morgan Stanley, Goldman Sachs and Credit Suisse have expanded existing teams.
These are some of the hedge funds that were betting on a Greek recovery. (CNBC)
This is what happens when you try to withdraw money from a Greek cash machine. (Twitter)
Deutsche Bank and Barclays actually increased their exposure to Greece last year. (Financial Times)
Credit Suisse is looking at moving some of its back office operations from London to Dublin. (Financial Times)
Bill McNabb, chief executive of Vanguard, said his group would continue to invest in the UK if it voted to leave the EU. (Financial Times)
It’s been a good few months for equity traders: The value of European equities trading will rise by more than 27% in the second quarter of 2015 from a year ago. (Financial News)
Central banks have no ammunition left in the event of another financial crisis. (Telegraph)
Tamara Abed, who worked in mergers and acquisitions at Goldman Sachs after earning her MBA at Columbia University in 2001. “I found it quite soulless… You have to write off your life.” (Bloomberg)
Common life mistakes that young people make. (James Altucher)