Star hedge fund manager Kyle Bass, founder of Hayman Capital Management, is also optimistic about the outlook for Greek stocks and bonds. He believes some sectors, such as bank stocks, are grossly undervalued — trading at a quarter of book value — and will rally next year if there is a political change of the guard.
Diego Ferro, co-chief investment officer of Greylock Capital Management, a $1 billion hedge fund involved in Greece’s bond restructuring, says he’s made good returns on bond investments in Greece. But not many investors are comfortable investing in undervalued, distressed and high-yield assets. “People are still worried about the volatility, although the Greek economy is much better,” Ferro said.
The Global X MSCI Greece ETF (GREK) is up 32 percent in the past year, but the fund’s five-year return is still negative 9 percent, according to Morningstar data through Oct. 13. The ETF has taken in $30 million from investors this year, according to XTF.com.
That may change soon, as many investors believe a market bottom has been hit and the Greek economy is poised for an upswing. On Monday the Hellenic American Leadership Council and the Chicago Council on Global Affairs jointly hosted Tsipras for a program on the state of economic and security cooperation between Greece and the United States. In addition, the prime minister visited 1871, a hub for more than 400 digital start-ups that houses accelerators, incubators, tech talent schools and the Illinois Science and Technology Coalition.
According to Endy Zemenides, executive director of HALC, a number of potential investors lined up to meet Tsipras over the weekend. They included John Calamos, founder of Calamos Investments; Richard Driehaus, founder of Driehaus Capital…