Time to buy Greek fixed income and equity is now, says Exotix

Investors looking to make significant returns on their investments should look at Greek fixed income and equities, says Peter Bartlett, managing director of Exotix, a London-based investment manager specializing in emerging and frontier markets.

Bartlett said: “It is the right time for investors to be exploring investment opportunities in Greece as there is a good chance that a rescheduling will be agreed before the March deadline. I believe there is the potential for investors to make significant returns in both bonds and equity.

He added: “Our experience of other crisis economies has taught us that often the rewarding opportunities fall to the early investors; the Greek Stock Exchange index epitomises the scale of the crisis, having fallen by a factor of seven from €171bn capitalisation to less than €25bn and is now only a shockingly low 11% of GDP, which compares to Zambia and Ghana, whereas most developed countries have market capitalisation/GDP ratios of 50-100%.”

Bartlett made his comments after completing an investor trip to Athens with local stockholder Beta Securities.

Evangelos Charatsis, managing director at Beta Securities, said: “After a protracted period of time, we are witnessing increasing interest around Greek fixed income and equity opportunities.”

The aim of this trip was to redress the persisting prejudices that have led to overly depressed valuations for Greek assets, says a note from Exotix. During the event, 16 fund managers with collective AUM of around $17bn were given access to leading Greek corporates and public sector institutions.

The trip targeted investment opportunities among the well-managed, and often export-orientated, companies through both debt and equity. The investors met with management teams at nine leading, listed Greek corporates as well as a number of public sector officials and a number of leading independent voices. They were given expert insight into Greece’s prospects, including recent progress in critical PSI (private sector involvement) debt negotiations. Discussions also focused on the government’s privatisation programme and the proposed structural changes that would stimulate economic growth.

The investors participating in the road show included five US, five UK and five other European funds specialising in emerging or distressed markets. The nine Greek corporates were Motor Oil; Hellenic Petroleum; Mytilineos; Metka; OTE; Intralot; Titan; Eurobank and National Bank of Greece.

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