In May, Paulson’s hedge fund acquired a 5.4% stake in Alpha Bank A.E. (ADR) (OTCMKTS:ALBKY), the fourth largest bank in Greece. Paulson & Co. also acquired a 9.9% stake in EYDAP S.A. (FRA:EYP), the largest water supply and sewage-company in the country. The hedge fund also invested in Piraeus Bank SA (OTCMKTS:BPIRY) and Eurobank Ergasias (FRA:EFGC).
In a rare interview with Harvard Business School that was published online earlier this month, (it has since been taken down) value investor Seth Klarman spoke at length about his investment process, philosophy and the changes value investors have had to overcome during the past decade. Klarman’s hedge fund, the Boston-based Baupost has one of Read More
Paulson said it’s too early to hold elections in Greece
During the 16th Link Invest in Greece Forum in New York, Paulson said, “Our investment plans are on hold for now, until we see the result of the presidential election.” He also opined that it would be best if the elections will be conducted in June 2016.
According to him, “It’s too early to hold fresh elections. The uncertainty has caused a drop in Greek stock markets and shares, while new investments are being postponed. The best course of action would be to avoid elections until June 2016 and give time to the current policies to act.”
Greece needs political stability
Paulson noted that reforms in Greece are paying dividend, but he emphasized that the country needs political stability. He intends to accelerate his investments in Greece “as soon as political stability is achieved.”
“Greece is at the start of a remarkable turnaround in its course, but political uncertainty will have to be lifted immediately.”
Paulson changed investment strategy
The hedge fund manager renamed Paulson Recovery Fund to Paulson Special Situations Fund citing the reason that the fund’s investment thesis has matured. The name changes will take effect on January 1, 2015.
Paulson decided to unwind his positions in financial companies based on his perception that the U.S. recovery slowed. The fund has also investments in Greek banks, Spanish and Irish real estate trusts.
The Special Situations Fund strategy is expected to primarily manage around 25 to 40 long positions. It fee structure will be the same—1.5% management fee, 20% charge on investment profits.