During the last twelve months, the London-based hedge fund has seen its assets halved to 1.17 billion dollars, according to a note released by Bloomberg to its clients. The fund implements an event-driven strategy, in which traders try to predict triggers for stocks and bonds such as corporate restructurings, mergers, management changes and share sales.The fund has lost 6.9% since its launch in November 2010, while event-driven hedge funds gained 4.6% on average during the same period.
Egerton Capital Limited has informed the AMF that it holds a net short position of 0.708% of the outstanding shares in Veolia Environnement on October 22, 2012. The hedge fund has increased its short position, which was previously , 0.520% of the capital on October 11. Veolia Environnement Ve SA (NYSE:VE) is a multinational French company with activities in four main service and utility areas traditionally managed by public authorities – water supply and water management, waste management, energy and transport services. It is quoted on Euronext Paris and the New York Stock Exchange Veolia Environnement Ve SA (NYSE:VE).
According to the latest reports published by the AMF on Monday night, the British hedge fund Ako Capital has further increased its short position in Alcatel Lucent SA (NYSE:ALU)up to 1.705% of the issued share capital in October 19 from 1.62% of the capital the day before.
Egerton Capital has also increased its short position to 0.64% of the capital in the French telecom equipment Alcatel Lucent SA (NYSE:ALU) on Oct. 19 against 0.57% of the capital on October 18.
Gecina fears of falling into the hands of hedge funds
According to the Les Echos, Gecina, one of the largest French property company, with 12 billion euros of assets property including 10,800 homes in Paris,fears falling into the hands of hedge funds.
The Spanish banks, creditors of the actual shareholders who are in bankruptcy, will soon hold the majority of the capital (58%) and they are not thinking of holding them. For shareholders who need cash, selling assets is now even more tempting, if the office market is in crisis, the residential real estate is at its highest. “Average premium [appreciation, Ed ] on our housing sales this year was 30% to 40%, ” said yesterday Bernard Michel, CEO of the company, presenting the quarterly results.
Gecina is a French listed real estate investment trust (SIIC) and is part of the FTSE4Good, Dow Jones Sustainability Index (DJSI) Stoxx and ASPI Eurozone® indices.
These hedge funds speculating on Greek debt
Since the last bailout of Greece in March, many hedge fund managers are back on the market despite the fact that the country is on the brink of bankruptcy, says the Wall Street Journal. Among them are well-known names in the world of finance, like Daniel Loeb’s Third Point Capital, Greylock Capital Management, Fir Tree Partners, and Appaloosa Management LP’s David Tepper, according to The Wall Street Journal.
Obviously, these managers are aware of the perilous situation in which there is Greece. But they believe that the price of Greek bonds can not go much lower, even if the new restructuring or exit from the euro area countries, the U.S. daily said.
Indeed, even though there are some positive signs, Greece still looks troubled. Almost no one thinks it will emerge from its deep slump any time soon, or even that it will pay back all it owes. The bonds are risky and the market small. But, the bulls argue, Greek bonds have been so cheap it hardly matters. They represent a rare chance to own debt of a European nation for a pittance. “You don’t get a lot of opportunities like these,” says Greylock’s Hans Humes, noting his portfolio is about 20% Greek debt.
In fact, this bet has paid off for some. Greek interest rates have indeed fallen sharply in recent months, those 10 years, for example, amounted to 16.9% currently, against 30% in late May. That made bond prices rise, and allowed Third Point, which has invested in July and August, to make hundreds of millions of dollars in paper profits .