Yesterday we reported on "concerted hedge fund attacks" rumors involving Greece. Today, via Alphaville, it appears that the mysterious hedge fund cabal strikes again, this time in Spain, and, more relevantly, this time there are names associated. If indeed these are the actors set on setting the world ablaze, they are more than likely the same ones who are involved in Greece, Portugal, Dubai, and elsewhere. Presenting: Moore Capital, Brevan Howard and Paulson & Co... Oh and JP Morgan and, ahem, Goldman Sachs.
From Cotizalia (obviously this is a Google translation for the sake of time).
Development Minister and deputy secretary general of the PSOE, José Blanco,
said yesterday that the sharp drop in the Spanish stock market last
week was due to "attack" of financial speculators, who were "somewhat
murky maneuvers" to punish the euro and weaker economies in the euro
But who are these 'speculators' evil to which he referred to the minister of development? What are their names? How much money managed?
For the trading desks of major international brokers have
sounded in recent sessions Brevan Howard, Moore Capital and
Paulson & Co, among others, Hegde funds that manage more than
500,000 million and are among the top ten. The total figure is nearly double industry. "There have been specific macro hedge funds, which are taking positions
against the euro and against the CDS (insurance coverage of
non-payment) of Spain," said a broker from abroad that term around 7%
of the daily volume of the Spanish stock exchange. "When these guys are short against someone, there is nothing to do. Already suffer from investment banks
in late 2008 when institutions like Merrill Lynch and Morgan Stanley
saw their CDS exceeded the benchmark of 2,000 points.
Among others who have been short are the hedge funds at Goldman Sachs and JP Morgan, according to financial sources say.
Same thing happened to investment banks at the end of 2008 or the Bank of England ten years ago. Against that little can be done except wait until they are closing their positions, "one expert said an investment banker. But he clarifies that "we
must not forget that they are the same as you did a lot of money to
corporate executives and banking in general when the opposite bet.