Spring's fund shorts the euro
Published 16/05/2010 | 05:00
DICK Spring is a director at a currency speculation fund manager that has made big money by shorting the euro.
The government-nominated AIB public interest director and his colleagues at Alder Capital have made huge profits as financial markets savage the euro over fears that the EU may implode over Greek, Spanish and Portuguese debt mountains. The euro has tumbled against the dollar in recent weeks as speculators and hedge funds smell blood.
Alder manages the €38.9m Friends First Insight Currency Fund, which scored double-digit returns by shorting the euro in 2009. It grew returns by 12.17 per cent by betting against the euro and the US dollar on currencies like sterling and the Australian and Canadian dollar, its latest quarterly report says.
The former Labour party leader and Tanaiste once slated the "financial pirates", or currency speculators, for putting pressure on the Irish punt in the early 1990s.
"We have capitalised on the weakness of the euro over the past while, against the strength of the Canadian and Australian dollar," said Alder co-founder Brian McCarthy.
But shorting the euro might not be as safe a bet anymore. "The euro is no longer seen as the successor to the dollar as a global currency."
Spring is a non-executive director and shareholder at at Alder Capital.
Mr Spring does not take part in any trading activities of Alder nor does he actively market Alder's services.