James Dinan’s York Capital Management is throwing itself at Greece this time. A week ago the investment firm announced it was buying a 10% stake in the Greek construction company, GEK Terna, Reuters reports. York will invest 100 million euros or $135 million in the company, entitling it to GEK Terna’s share capital increase and giving it a 3% stake in GEK Terna’s energy arm, Terna Energy.
This is not the first time that York Capital has grabbed Greek assets. The fund was the among the first ones to have an interest in the recapitalization of Greek banks. Sam Jones from Financial Times reported in October that York Capital has taken stakes in Greece’s Alpha Bank A.E. (ADR) (OTCMKTS:ALBKY) and PIRAEUS BANK SA (OTCMKTS:BPIRY).
York Capital rises in October
Separately York Capital’s flagship multi-strategy rose 2.7% in last month, bringing up the year-to-date gain to 12.12%, according to a October stat sheet seen by ValueWalk.
Take a look at York Capital’s September performance here.
Other funds also saw a boost: York Credit Opportunities 13.12% for the year after recording a gain of 2.6% in October. The credit focused strategy of York Capital manages $5.5 billion, and is doing okay compared to other credit hedge funds. Jon Bauer’s flagship, Contrarian Capital Fund I is up 13.4% YTD whereas Paulson Credit Opportunities is up 17% for the year after netting a 1.8% return in October.
James Dinan’s firm also gained 1.9% in the European Opportunities Fund, which is now up 10.6% for the year. The York Asian Opportunities was up 1.2% in last month and is up 11.87% for the year.
Last month York struck up a deal with Augustea Bunge Maritime Limited to operate a fleet of merchant vessels. The joint venture was signed between York Capital and ABML forming a new company, ABY Holding Limited. ABML is a joint venture of an Italy based company and Bunge Ltd. (NYSE:BG).
York subscribes to 5-year bond issue
York Capital’s agreement with GEK Terna also includes subscription to the five-year bond issue. “The investment will contribute to GEK Terna’s efforts for ongoing growth and implementation of the group’s investment plan and reflects a vote of confidence for the recovery of the Greek economy,” the joint statement from York Capital and GEK Terna said.
Confidence in Greece’s emergence from a six year long recession is improving among investors. More and more hedge funds are clamoring to buy Greek assets, believing that a full scale recovery will bring hefty profits in the future. Despite of its high rate of unemployment, Greece is still bagging high gains in markets. Global X Funds (NYSEARCA:GREK) has gained nearly 20% YTD.