Swiss fund bets on legal insider trading
November 22, 2011
A Zurich firm thinks the actions of insiders will allow it to profit from the exposure of some large financial institutions to risky European debt.
A long/short equity fund launched by Swiss Investment Managers in Zurich is monitoring the legal insider trades of top executives as way of predicting which financial institutions face the greatest potential losses from their exposure to European debt.
Athanasios Ladopoulos, chairman and director of the firm, is keeping a particularly close watch on what board members of banks know about the risks their institutions face from European debt exposure. “It’s fair to say we have short positions in European banks,” said Ladopoulos, who started the firm last year and launched the fund in September. He added that U.S. banks might be next.
With the new fund, which he anticipates will have €50 million ($68.9 million) in assets by the end of its first year, Ladopoulos is tracking the buying and...
TAKE A FREE TRIAL
The full contents of this article are available to Absolute Return subscribers and trialists only.
To continue reading please, take a free trial, subscribe or log in.
Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.