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Hedge Fund Corriente Gives Cash Back To Investors After Making A Killing Shorting European Debt

Date: Wednesday, February 24, 2010
Author: Business Insider

Corriente’s European Divergence Master Fund LP is cashing out a portion of the profits they made shorting European government bonds now.

A source at Bloomberg says the hedge fund will be returning $320 million to investors in the fund, which was set up in late 2007.

They still think there's a great opportunity, and are offering investors a chance to invest in another fund that's still making the same bet.

But you have to figure that a move like this represents, to some extent, a desire to take chips off the table.

Bloomberg suggests that the negative press associated with shorting the economies of troubled nations might be also a factor, though the fund denies it's done anything wrong.

Hugh Hendry seems to not care about negative press and to be betting on the continued decline of the Euro nations anyway.

Oh, and what is Corriente shorting next?