Hedge funds bet big on stricken euro

Hedge funds, including Hayman Advisers and Matrix Group, have told investors they expect the sovereign debt crisis to worsen despite the €110bn EU and IMF bailout, the Sunday Telegraph reports. Traders and brokers told the paper hedge funds are using a range of financial instruments to bet that the value of the euro will fall. One trader said: "Shorting the euro is the biggest bet in town. We are seeing big volumes in credit default swaps and short selling in equities that are exposed to the euro." Gennaro Pucci, manager at Matrix, returned 19% last month in its €110m Global Credit...