Hedge funds ready to bet on Greek 'resurrection'

London

SOME hedge funds are eyeing investments in Greek stocks and debt they see as cheap, predicting a recovery after seven years of crisis even while politicians continue to wrangle over reforms needed to secure more aid.

They say last year's recapitalisation of Greek banks and new bankruptcy rules that should make it easier for lenders to sell their non-performing loans, plus a fall in stock prices to historic lows, create opportunities for risk-taking investors. "Timing-wise, a few things play together," said Rudolf Bohli, founder and chief investment officer at RBR Capital, which launched a fund for Greece in May and has already started buying shares in local companies.

RBR made a return of almost 30 per cent in 2012 after betting on a Spanish…