U.S. hedge funds investing heavily in Greek banks - FT

Reuters
President and Portfolio Manager of Paulson & Co. Paulson speaks during the Sohn Investment Conference in New York
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President and Portfolio Manager of Paulson & Co. John Paulson speaks during the Sohn Investment Conference in New York, May 16, 2012. REUTERS/Eduardo Munoz

(Reuters) - Hedge fund billionaire John Paulson's Paulson & Co and a number of other U.S. hedge funds are investing aggressively into Greece's struggling banking sector expecting it to turn a corner, the Financial Times reported on Sunday.

The FT said the interest from these funds had prompted big banks in the country to lobby the government to consider speeding up the reprivatisation of the sector.

Paulson & Co could not be immediately reached for comment.

John Paulson told the Financial Times that his fund had substantial stakes in Piraeus Bank (ATH:TPEIR) and Alpha Bank (ATH:ALPHA).

"(Both) are now very well capitalised and poised to recover (with) good management," he was quoted as saying.

The Financial Times citing unnamed sources said that Baupost, Eaglevale, Dromeus Capital, Falcon Edge, York Capital and Och-Ziff are among the other funds investing heavily in Greek banks.

(Reporting by Tasim Zahid in Bangalore; Editing by Eric Walsh)

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