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Marc Lasry Dips into his European Shopping List

December 9, 2011 Leave a comment

A few months back I had the privilege to attend a panel with Marc Lasry and several other big shots in the hedge fund business.  Lasry is one of my personal favorites.  It’s not just that he’s a lawyer by academic training (in fact that might be more a negative than positive sometimes), it’s that he tends to have the best research and one of the more objective, clearheaded and apolitical views on markets.

When I last heard Lasry speak, he made it clear that he was developing a shopping list in Europe; however, he had yet to take a big splash into markets.  In particular, Lasry was looking for signs of a recapitalization plan for European banks in order to create a “crisis firewall” that would prevent further contagion.  My understanding was that an aggressive bank recapitalization was more important than a sovereign debt backstop, because it would allow for a temporary escape from the panicked environment, thus affording time to develop a longer term solution to the structural problems plaguing the Euro.

Yesterday morning, Lasry made a guest appearance on CNBC’s Squawk Box where he discussed the latest in the Eurozone mess.  Sure enough, despite the fact that many remain wary of Europe, Lasry disclosed that he was putting capital to work in the region, operating on a 2-4 year time-frame.  This is telling, because in the eyes of many, Europe continues to “kick the can down the road,” yet with someone like Lasry stepping in its a little clearer that a) the value is there from an investment perspective, and b) amongst those with good research and access to information there is an endgame clearly within reach.

Go ahead and give it a watch to learn more about Lasry’s perspective on Europe and a little further depth on precisely where he is making these investments (hint: the value is not in the PIIGS).

I’m having trouble getting the video to embed, so if it’s not working click on this link to check it out.

http://plus.cnbc.com/rssvideosearch/action/player/id/3000060922/code/cnbcplayershare

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