Hedge funds are a curious bunch. Take Dromeus Capital Group, which last November trumpeted the launch of its Greek-focused hedge fund, Dromeus Greek Advantage Fund, to bet on the recovery of Greek assets.
Its gamble paid off – in the first six months the fund apparently delivered a 50% return to its investors. But fast forward to April 4, and Dromeus has changed its tune, telling the world in a press release that it has now turned “cautious” on Greece as Greek assets looked overstretched after a phenomenal rebound. “Greek asset prices have been through a tremendous rally over the last three quarters but future prospects increasingly depend on budget execution and output recovery and we have doubts on both,” says Achilles Risvas, managing partner at Dromeus Capital, which takes its name from the Greek word for runner. We don’t know the Greek for ‘long/short strategy’, but we do think Dromeus’s approach is a fine example of it.