Avenue Capital Europe
Some Hedge Funds Long on Euro Zone CountriesThe New York Times has an interesting story on a hedge fund, Avenue Capital, which is taking a large long bet on the Euro Zone's recovery. While many hedge funds have been burnt betting on the debt of European countries and companies operating within the Euro Zone, Avenue Capital and other investment funds like Blackstone and KKR are taking a long-term positive view of the situation and for the investments to pay off, the hedge fund has to be patient according to Avenue Capital founder, Marc Lasry. He explains it's a 3-5 year bet, not a 3 month trade.
And after markets rallied in 2009 and 2010, instead of holding out for more gains, he took money off the table and returned $9 billion to investors in his hedge fund.
Now, even as Europe’s economic problems worsen and the markets punish giants like Spain and Italy, Mr. Lasry is betting on a long-term comeback for the Continent. This month, his hedge fund, Avenue Capital, finished raising nearly $3 billion for a fund that will invest in the debt of troubled European companies.
He has committed roughly $75 million of his own money to the new fund. That’s still a small part of his estimated $1.3 billion fortune, but Mr. Lasry is among a coterie of hedge fund and private equity managers who are gambling that the euro zone will stay intact and revive over the long run. Source