CQS founder Michael Hintze has warned that more eurozone troubles could lie ahead if France doesn't put deeper economic reforms in place.
In a letter to investors, which was obtained by The Telegraph, Hintze argued that a loss of confidence in France would have "far-reaching consequences," both in terms of the European Union and broader global financial markets. He cited growing discontent amongst French youth and political paralysis as concerning factors.
You can read the article here.
The Financial Times recently reported on the difficulties facing activist investors in Japan. The article quotes Chris Hohn, founder of The Children's Investment Fund, discussing his experience:
“We called it a mission impossible to our investors when we took a stake in Japan Tobacco,” says Chris Hohn, head of The Children’s Investment Fund, one of the world’s biggest activists.
Although TCI’s JT bet has been a success – the stock has risen 140 per cent since they acquired it – it is “an exception to the rule,” according to Mr Hohn:
“Japan is not a good place for activist investors. Although there are a huge number of mismanaged companies that are cheap and should be taken over, the laws are catastrophic for activists.”...
“Culturally, there are very few people who are willing to think outside the box,” says Mr Hohn. “People who have tried to do activism in Japan have failed.”
Read the full FT article here.
The Wall Street Journal reports that Michael Hintze's hedge fund CQS is one of a growing group of investors returning to Greece. According to the article, investors are attracted by the high returns offered by many of Greece's battered assets:
"We have been constructive on Greece since Angela Merkel's visit to Athens in October last year. It was a strong signal of support for the euro project," said Michael Hintze, chief executive of credit specialist CQS in London, which has $12 billion of assets under management.
In October, following Ms. Merkel's announcement, Mr. Hintze bought bonds of Hellenic Telecommunications Organization SA. In January, the company issued €700 million of debt with an interest rate of 7.875%. Mr. Hintze added to the position in February.
Read the article at WSJ.com (subscription required).