Hedgie Algebris struggles to make the numbers stack up

THE hedge fund manager backed by industry star Chris Hohn (pictured) expects a recovery in financial stocks after being hit last year by Eurozone leaders’ failure to tackle the debt crisis.

Alex Lasagna, head of business development and investor relations at Algebris, said: “We think after five years of significant under-performance by financials there could be a return… This could be the year for financials, credit and possibly equity at the end of the year.”

Algebris’ Global Financials fund fell 46 per cent last year. Lasagna highlighted the €109bn (£70bn) Greek bailout in July which failed to stabilise the Eurozone.

“Last year we went long too soon and too hard…. With hindsight, we should have gone long the end of the process,” he said.

Meanwhile Crispin Odey’s European fund lost 2.8 per cent last month. David Stewart, head of Odey Asset Management, told City A.M. the fund would continue to invest in media and US banks.