Money managers promising big returns from European credit investments are probably overstating the opportunity, Seer Capital Management Chief Executive Officer Philip Weingord said.
“There are interesting opportunities in Europe but it’s more hype than reality,” Weingord said in a Bloomberg Television interview Thursday with Stephanie Ruhle and Erik Schatzker at the SkyBridge Alternatives Conference in Las Vegas. While fund managers have been touting for years the potential for European banks to unload large swaths of assets as they face tougher regulations, “it’s not happening,” he said.
Weingord’s $2.2 billion hedge-fund firm is about 25 percent invested in Europe, preferring U.S. debt such as commercial real-estate investments, he said. In Europe, it’s investing in loans to smaller companies and executing trades with banks that help the lenders lower their capital requirements, he said. Seer raised $155 million for a fund to buy European credit assets that closed to new investments in December.