Hedge Fund Shorts Credit Suisse on Frozen Greensill Funds
- John Hempton is also wagering on declines in Tokio Marine, IAG
- Fund manager has highlighted how the bank marketed its funds
An Australian hedge fund is betting against Credit Suisse Group AG, expecting the Swiss lender may end up having to compensate clients for losses tied to billions of dollars invested in funds it ran with embattled financier Lex Greensill.
John Hempton, the co-founder and chief investment officer of Bronte Capital Management Pty, said in an interview Tuesday that he’d placed a “reasonable-sized short” last week, mainly against Credit Suisse. Known for bets against Wirecard AG and Valeant Pharmaceuticals International Inc., Hempton is also wagering on declines in Japanese insurance giant Tokio Marine Holdings Inc. and Insurance Australia Group Ltd. -- the two firms that had provided default cover for loans made by Greensill’s eponymous company.