{"id":358202,"date":"2010-02-24T09:29:56","date_gmt":"2010-02-24T14:29:56","guid":{"rendered":"http:\/\/www.businessinsider.com\/pessimist-paranoid-hedge-funder-and-an-ex-french-army-lieutenant-quietly-make-a-killing-on-euro-debt-2010-2"},"modified":"2010-02-24T09:29:56","modified_gmt":"2010-02-24T14:29:56","slug":"pessimist-paranoid-hedge-funder-and-an-ex-french-army-lieutenant-quietly-make-a-killing-on-euro-debt","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/358202","title":{"rendered":"Pessimist, Paranoid Hedge Funder And An Ex-French Army Lieutenant Quietly Make A Killing On Euro Debt"},"content":{"rendered":"

\"Mark-Hart\"<\/p>\n

Bearish Texan hedge fund manager, Mark Hart made a bundle by betting against Greece, Portugal, and Spain and only telling friends what he was doing.<\/p>\n

According to the people who spoke to the Wall Street Journal<\/a>, Corriente Capital’s Hart is so pessimistic that he tells his investors to buy physical bars of gold.<\/p>\n

He’s kind of paranoid, too. Mr. Hart apparently wrote that no one should reveal details about the fund and their trades in a letter to the investors in his fund, European Divergence Fund LP.<\/p>\n

The Wall Street Journal’s sources speculate that Hart and his partner, Louis-Vincent Gave (an ex-French army Lieutenant), probably kept their moves quiet in fear of a government backlash.<\/p>\n

The fund invests in CDS that protect against a debt default in Greece, Portugal, and Spain. Governments of course don’t encourage betting on the downfall of those nations.<\/p>\n

The sources also suggest that Hart and Gave kept mum because they didn’t want others making the same move – which would raise the price of purchasing the insurance.<\/p>\n

The Divergence Fund has been performing well on these bets. It was up a huge 92% in 2008. So far this year, the Divergence Fund is up 20%.<\/p>\n

Now they’re taking some chips off the table. The fund recently returned $320 million in profits on the defaults to investors<\/a>, but kept some money in the positions.<\/p>\n

Join the conversation about this story »<\/a><\/p>\n

See Also:<\/b><\/p>\n