If I were a professional investor, it would literally take me five minutes to decide that this was uninvestable, said a forensic accountant.
LONDON (March 11): It took Lex Greensill two decades to ascend from the red dirt of his family s sugar cane and melon farm in Australia to heading his own finance firm and travelling the world on a fleet of private jets. His fall back to earth took just a week.
On March 8, his company, Greensill Capital, which boasted billions of dollars in backing from investors such as SoftBank Group Corp and General Atlantic, collapsed into insolvency. In October, Greensill predicted he would soon sell a small stake of the company for hundreds of millions of dollars, implying a valuation of roughly US$7 billion. Finance house Athene Holding Ltd, picking through what was left of the company, found little of interest beyond computer systems and some intellectual property, which it offered to buy for only US$60 million though that deal now appears question
Hedge Fund Shorts Credit Suisse on Frozen Greensill Funds
This content was published on March 11, 2021 - 02:58
March 11, 2021 - 02:58
(Bloomberg) An Australian hedge fund is betting against Credit Suisse Group AG, expecting the Swiss lender may end up having to compensate clients for losses tied to billions of dollars invested in funds it ran with embattled financier Lex Greensill.
John Hempton, the co-founder and chief investment officer of Bronte Capital Management Pty, said in an interview Tuesday that he’d placed a “reasonable-sized short” last week, mainly against Credit Suisse. Known for bets against Wirecard AG and Valeant Pharmaceuticals International Inc., Hempton is also wagering on declines in Japanese insurance giant Tokio Marine Holdings Inc. and Insurance Australia Group Ltd. the two firms that had provided default cover for loans made by Greensill’s eponymous company.
Tokio Marine is considering its legal position as the Japanese insurer reviews the validity of its trade credit insurance policies for the insolvent Greensill Capital finance group, according to a source familiar with the matter.
Japanese insurer Tokio Marine Holdings Inc said on Wednesday it is investigating the validity of insurance policies provided by its Australian unit to speciality finance firm Greensill.
Hedge Fund Bronte Shorts Credit Suisse on Frozen Greensill Funds bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.