Elliott Making Big Profits From Espirito Santo Troubles

Paul Singer’s Elliott Management continues to rake in profits from its short against Portugal Telecom, SGPS (ADR) (NYSE:PT). The largest telecom operator in Portugal has suffered a -60% decline in share price this year, making Elliott’s 2% short position all the more sweet. Espirito Santo troubles Portugal Telecom’s troubles started with the corruption scandals surrounding the  Espirito Santo group. Banco Espirito Santo group holds a 10% stake in Portugal Telecom. Things fell apart when Portugal’s largest lender, Banco Espirito Santo SA (ELI:BES) was bailed out by the European Union, making the securities it had issued worthless. The fall of Espirito Santo empire has impacted many investors, even…