Hedge Funds Titans Bet Big Against the Euro
|February 26th, 2010||
|Several high profile hedge fund managers, including SAC Capital Advisors and Soros Fund Management, are betting big against the Euro based on the belief that the value of the Euro is likely to decline to a point where it will be equal to the US Dollar. The Euro is currently trading at $1.35, compared to $1.51 in December, and a further decline to $1 could translate into enormous profits for these hedge funds.|
The trade is rumored to be the result of an “idea dinner” in Manhattan hosted by a boutique investment bank and attended by a group of exclusive hedge funds. A similar scenario occurred in 2008 when several hedge funds, including Greenlight Capital, bet against Lehman Brothers and other financial services securities, which many critics believe accelerated their decline.
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