{"id":48669,"date":"2015-06-10T08:52:52","date_gmt":"2015-06-10T12:52:52","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=48669"},"modified":"2015-06-10T08:55:59","modified_gmt":"2015-06-10T12:55:59","slug":"hedge-fund-managers-increase-bets-on-european-ma","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/06\/2015\/hedge-fund-managers-increase-bets-on-european-ma.html","title":{"rendered":"Hedge Fund Managers Increase Bets on European M&A"},"content":{"rendered":"

(Reuters.Com<\/strong>) According to a recent article in Reuters, Hedge fund managers looking to profit from corporate announcements such as mergers and acquisitions are scaling up their bets in Europe, confident that a resolution of the Greek debt crisis is near and will spark an increase in deal-making.<\/p>\n

The corporate world has seen a revival in M&A as cash-rich companies look to put billions of dollars to work by buying in growth in the face of tepid demand in many developed markets.<\/p>\n

But while deals are up by a fifth from last year in Europe to $436 billion so far this year — the highest level since 2008 — they lag a 47 percent jump in the United States and 60 percent advance in Asia, Thomson Reuters data showed.<\/p>\n

A conclusion to the long-running Greek debt crisis, whatever the outcome, would remove one of the big obstacles to deal-making in Europe and unlock billions more in corporate cash.<\/p>\n

“The only thing holding us back is this dance still going on for Greece,” said Reade Griffith, co-founder of Polygon, who manages one of the biggest event driven hedge funds in Europe.<\/p>\n

A recent Reuters poll indicates a one-in-three chance of a Greece reaching a deal with its creditors.<\/p>\n

A government spokesman said on Monday Greece was willing to compromise to reach a deal and is ready to negotiate until the end of June.<\/p>\n

Griffith said he has doubled exposure to M&A deals in his $600 million European event-driven hedge fund, part of $1.5 billion his firm manages, to about 40 percent, although he declined to say when the move took place.<\/p>\n

Part of a broader industry strategy aimed at making money from major corporate events, these deal-focused funds gained 8 percent as a group through the end of April this year, their best start since 2010, and above the 2 percent gain for their U.S. rivals, hedge fund data provider Eurekahedge said.<\/p>\n

“Today we see M&A activity becoming relevant to more than 30 percent of our potential upside return in many cases,” said Luke Lynch, deputy chief investment officer at European hedge fund Oceanwood, which manages $2.2 billion and has closed to new investors.<\/p>\n

One of the most popular bets in Europe is Royal Dutch Shell and BG, which Shell has agreed to buy for $70 billion, and the merger of Nokia and Alcatel-Lucent, said Philippe Ferreira, head of research at Lyxor Asset Management.<\/p>\n

Energy and power, materials, healthcare, and industrials sector firms have accounted for nearly 60 percent of the deal volume in Europe this year, Thomson Reuters data showed.<\/p>\n

That is expected to broaden out. Oceanwood’s Lynch said he expects more deals among content-led media firms and Italian telecommunications tower companies.<\/p>\n

For the entire article go to www.reuters.com<\/strong><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

(Reuters.Com) According to a recent article in Reuters, Hedge fund managers looking to profit from corporate announcements such as mergers and acquisitions are scaling up their bets in Europe, confident that a resolution of the Greek debt crisis is near […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-48669","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=48669"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48669\/revisions"}],"predecessor-version":[{"id":48670,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48669\/revisions\/48670"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=48669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=48669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=48669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}