A Greece-focused hedge fund has been launched by Dromeus
Capital Group, an emerging markets alternative investment
specialist based in Geneva and Athens, that is thought to be
one of the first funds to focus specifically on a recovery in
The fund will target opportunities created by the sell-off
in Greek assets since the start of the financial crisis. The
Greek stock market has dropped by 83%, while the country's real
GDP has contracted by 20% since 2008.
Dromeus says that the size of the fund will be limited to
€200 million until there are substantial improvements in
the liquidity of the Greek debt and equity markets.
A statement from the firm said the launch of the fund marks
a major change from Dromeus' previous negative stance towards
Greek assets - with the firm first warning investors of the
impending problems of Greece's debt in the aftermath of the
financial crisis in 2008.
Achilles Risvas, CEO and managing partner of Dromeus Capital
Group, commented: "The huge uncertainty and political
instability has caused investors to sell down Greek assets to
prices from which the likelihood of further declines is
He added: "This is the ideal environment for deep-value
investors. Prices of stocks and bonds are cheap both versus
historical norms and relative to comparable Eurozone assets.
The market is priced for the worst case scenario of a Greek
exit from the Euro and even more extreme distress to the Greek
However, Risvas explains that the fund will be investing on
the basis that a revaluation in Greek assets is likely to be a
protracted process - with more periods of extreme volatility
He said: "We will only gradually accumulate select
investments that meet our fund's strict liquidity criteria.
Although the entire market is oversold, investment selection is
the key to outperformance. We are looking for bargains and we
will avoid overpriced securities."
The firm said that initial investors in the Dromeus Greek
Advantage Fund include funds of funds, private banks, asset
managers and family offices. It says the fund will use futures
to lower the volatility of the portfolio and will not use