Corriente’s European Divergence Master Fund LP is cashing out a portion of the profits they made shorting European government bonds now.A source at Bloomberg says the hedge fund will be returning $320 million to investors in the fund, which was set up in late 2007.
They still think there’s a great opportunity, and are offering investors a chance to invest in another fund that’s still making the same bet.
But you have to figure that a move like this represents, to some extent, a desire to take chips off the table.
Bloomberg suggests that the negative press associated with shorting the economies of troubled nations might be also a factor, though the fund denies it’s done anything wrong.
Oh, and what is Corriente shorting next?
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