Summit Notebook

Exclusive outtakes from industry leaders

from Funds Hub:

Hedge funds: Greece is the word

This week's Reuters Hedge Fund and Private Equity Summit gave us some new insights into how hedge funds are betting on Greece's debt crisis and their attitude to talk that politicians and regulators may clamp down on their activities.

According to Cheyne Capital, for instance, buying Greek CDS is an "old trade" that many hedge funds have moved out of. Many have instead moved to short bets on the euro, as the single currency comes under pressure from the debt of some southern European countries.

Then again, two managers from GLG, ranked by Eurohedge this week as Europe's 6th biggest hedge fund firm, said they are actually long the euro.

The rationale, according to fund manager Karim Abdel-Motaal, is that the euro is the least ugly major currency and hasn't seen the same quantitative easing used elsewhere.