Global macro hedge fund manager Moore Capital criticized European plans to bail out Greece and predicted a breakdown of the European Monetary Union in a recent investor letter. According to a MarketWatch article from last week, Moore Capital’s founder Louis Moore Bacon warns of the disastrous consequences of ignoring the market’s warning and forcing all countries in the European Union to shoulder Greece’s economic woes. According to Mr. Bacon, the prudent solution would have been either to expel Greece from the EU or to force the country to restructure the debt, which would strengthen the euro.
Louis Bacon further warns that sovereign-wealth funds, which had previously supported the European currency by purchasing Euros to diversify the holdings, may begin to look instead to emerging market currencies to avoid the euro’s solvency problems. Mr. Bacon also criticized Europe’s attempts to impose heavy financial regulations on hedge funds, and hedge funds were castigated for betting against Greece’s debt and shorting the country’s bond market as early as February.
Moore Capital Management was founded in 1989 by Louis Bacon. The firm has offices in New York, Washington DC and London. |
