The Hedge Funds Weblog
HEDGE FUNDS ARE HERE!
International hedge funds are poring over a list of 14 local real estate investment trust sector (REITS) that are trading below net tangible asset waiting to attack them. In the past few months, hedge funds have been following closely REITs they have tagged as potential money spinners for overseas property sales or to arbitrage the share price against the realizable value of the trust .
While hedge funds are a long way from their glory days, those with strong balance sheets are expected to use the next phase of the listed property trust cycle to make money by taking advantage of low share prices. There was a suggestion that a few hedge funds had already started buying shares but are yet to declare their hand. Last year, hedge funds Appaloosa Management and Paulson & Co waded into the distressed debt sector buying $18.6 billion of Centro Properties Group's distressed debt.
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