A small New York hedge fund has found a new way to profit from the unfolding Greek economic tragedy.
The cash will push the assets at Greylock past the $500 million mark.
Greylock’s profile rose earlier this year with Humes’ involvement on the Greek creditors’ committee.
The Midtown Manhattan fund, which buys distressed emerging-market debt, had already profited from the Athens meltdown by buying severely discounted Greek debt last fall.
Humes’ purchase price was below the 25 percent payout engineered in the March Greece restructuring — allowing Greylock to pocket the difference.
Despite the bonds’ recent decline, Humes is still bullish on Greece.
The money manager thinks the country should be given a break and allowed to operate on a much longer fiscal leash.
“It doesn’t look like austerity works,” he said. “You’ve got to ease up.”
“If you want to buy something, buy Greek bonds,” said Humes. Since the election, the bonds have rallied by 20 percent to yield about 25 percent.
That compares with the 6.5 percent offered by 10-year Spanish government bonds.
Hans Humes, Midtown Manhattan fund, Greek bonds, Greylock, New York hedge fund