Panic Sets in Among Hardy Hedge Fund Investors Remaining in Greece

New York Times ^ | 28 June 2015 | Landon Thomas Jr.

[Lorianne]

For investors around the world looking at Greece, there was but one question Sunday: What is going to happen when the markets open?

On Sunday night, the prime minister, Alexis Tsipras, said in a televised address that Greece’s banks and stock market would be closed on Monday, as Athens tries to avert a financial collapse.

But the question of what happens when the markets do open is particularly acute for the hedge fund investors — including luminaries like David Einhorn and John Paulson — who have collectively poured more than 10 billion euros, or $11 billion, into Greek government bonds, bank stocks and a slew of other investments.

Most of the hedge fund money in Greece is invested in about 30 billion euros of freshly minted Greek government debt securities that emerged from the 2012 restructuring of private sector bonds.

Advertisement Continue reading the main story The largest investors include Japonica Partners in Rhode Island, the French investment funds H20 and Carmignac, and an assortment of other hedge funds like Farallon, Fortress, York Capital, Baupost, Knighthead and Greylock Capital.

A number of hedge funds have also made big bets on Greek banks, despite their thin levels of capital and nonperforming loans of around 50 percent of assets.

[sgtyork]

-—Panic Sets in Among Hardy Hedge Fund Investors Remaining in Greece

They just left out one word..

Panic Sets in Among foolHardy Hedge Fund Investors Remaining in Greece

[Lorianne]

good one!