Reuters – A hedge fund set up to speculate on the poor health of Spain’s banks has so far failed to cash in on slumping confidence in the country’s financial system, sources said, showing just how tough it is for funds trying to profit from the euro zone debt crisis.
London-based Capula Investment Management, a $13 billion (8 billion pounds) firm partly owned by Goldman Sachs, had pitched the idea for the fund to investors last year, saying it would bet on deepening problems in the Spanish banking system, two sources familiar with the fund said.
