How Important Is Greece In The Hedge Fund Realm

New York ( – It seems as if each trading day is being dictated by the latest news out of Greece. Is there a deal or did talks break off again? In the overall scheme of things, yes Greece and a potential exit from the Euro currency is a big deal and yes if Greece defaults on its debt, it will hurt equity and debt markets around the globe, but what about hedge funds? Are hedge funds heavily vested in the debt negotiations of Greece?

The obvious answer is that it depends on the fund and its investment objectives. It seems that most hedge funds are steering clear of Greece, but a number of big name hedge funds have been openly shorting the shares of Greece’s banks and the regulators in Greece have attempted to levy fines against the funds that are doing so, claiming they are naked short sells.

It seems that most of the funds with equity positions have taken precautions to make sure the investments are hedged while most funds seem to be avoiding any type of debt investments in Greece. It does seem like a binary bet that is going to either be a strikeout or a home run.

Rick Pendergraft
Research Analyst

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