Hedge fund manager Daniel Loeb built a major position in
distressed Greek government bonds in September, according to a monthly report
and quarterly letter he sent to his investors, according to Reuters.
Loeb's nearly $5 billion Third Point Offshore Fund gained
3.4 percent last month, helped by a bullish position in Greek debt, said the
Sept. 30 monthly note, which was reviewed by Reuters. The hedge fund increased its exposure to
European credit through July and August, including Greek bonds, in anticipation
of "a strong reaction from the ECB" to markets in turmoil from
worsening debt troubles in Spain and a European Union summit that failed to
calm anxious investors, Loeb said in a more detailed quarterly letter released
on Wednesday and obtained by Reuters.
The hedge fund scooped up certain Greek government bonds for
about 17 cents on the dollar, which were part of a so-called "strip"
of 20 newly issued bonds that mostly trade bundled together, Loeb said in the
October 3 letter. The individual bonds have an average maturity of about 20
years….
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