Paulson & Co, headed by hedge fund billionaire John Paulson, together with a number of US hedge funds had been aggressively investing into the struggling banking sector of Greece.
Paulson told the Financial Times that he considers Greece’s recapitalised banking sector as an attractive investment on the country’s recovery after a deep six-year downturn.
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Urged by Greece’s rising exports and a rebounding tourism sector, U.S. hedge fund group Paulson & Co expects the protracted recession to bottom out this year and begin recovery in 2014.
Paulson said: "The Greek economy is improving, which should benefit the banking sector.
"Paulson & Co had substantial stakes in Piraeus and Alpha, the two banks that have emerged in best shape from the crisis. Both are now very well capitalised and poised to recover with good management," he added.
The share prices of both Alpha and Piraeus are up a modest 8% since the capital raisings. But the separately traded warrants, given to investors alongside the shares, have risen more than 100% and 80%, respectively, told the Financial Times.
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By GlobalDataThe sector has long been avoided by investors because of the fragile state of the wider Greek economy, forced to accept a series of bailout deals in recent years.
Others hedge funds investing in Greece include Baupost, Eaglevale, Dromeus Capital, Falcon Edge, York Capital and Och-Ziff, Wellington Capital Group and Fidelity.
