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Which U.S. Hedge Funds Have Been Hit By Puerto Rico and Greece Crisis?

Hedge Fund With Large Exposures To Greek And Puerto Rican Public Equity 

Greece missed a crucial debt payment to the International Monetary Fund (IMF) on June 30th 2015. Technically, Greece is not in default, but missing the debt payment to the IMF is probably a warning that the country will not be able to meet its debt obligations. In the event of a delayed repayment, according to IMF protocol, Greece could be afforded a 30-day grace period, during which it would be urged to pay back the money. S&P Ratings Services also downgraded the country from ‘CCC’ to ‘CCC-‘on June 29th 2015, which signifies ‘substantial risk’ of default.

As we monitor Hedge Funds and as these funds are referred to as ‘smart money’, we decided to look at the top five US Hedge Funds that are heavily invested in Greek equities. Below is a table that shows US Hedge Funds and the portfolio percentage invested in Greek public equity.

We will monitor these funds when they file their next 13F* to see how their exposures changed.  But, one could assume that these exposures to Greek equities pose a significant risk to the performance of the portfolios if they are kept. 

Top Five US Hedge Funds Invested in Greek Public Equity

 Top Five US Hedge Funds Invested in Greek Public Equity

Puerto Rico (PR) is a slightly different situation. Yes, it has been dubbed the ‘Greece of America’, but it recently made several debt payments to its creditors according to the government spokesperson. This means the country has avoided default, for now. The country still has a debt to pay of around $70 billion in the next several months.

This may have affected the seven PR public companies and caused their stock prices drop by 11% since June 25th 2015. 

Puerto Rico Public Companies (Price) - Index Value

Again, we decided to look at the top five US Hedge Funds that are heavily invested in PR equities. Below is a table that shows US Hedge Funds and the portfolio percentages invested in PR public equity.

We will also monitor these funds when they file their next 13F* to see how their exposures change. 

Top Five US Hedge Funds Invested in Puerto Rican Public Equity

Top Five US Hedge Funds Invested in Puerto Rican Public Equity

*DISCLAIMER

 Form 13F Reports are required to be filed within 45 days of the end of a calendar quarter by institutional investment managers with the U.S. Securities and Exchange Commission (SEC).  An institutional investment manager is an entity that invests in, buys or sells securities for its own account, or a natural person or entity that exercises investment discretion over the account of any other natural person or entity. Only securities on the 13F list provided quarterly by the SEC (13F Securities) are required to be included in Form 13F Reports. Therefore, Form 13F Reports may not reflect the most current holdings of institutional investment managers because it is required that the 13F Report include only 13F Securities, is filed on a lag, and some funds may not meet the filing thresholds or other requirements. In addition, because the 13F Reports are as of the last date of the quarter, the 13F Report may not describe intra-quarter activity.

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