LONDON (Reuters) - Brevan Howard Asset Management, one of Europe’s largest hedge funds, said it is winding down a fund that bet on Argentine assets after the country agreed a deal with creditors.
Argentina returned to capital markets last month after ending a 14-year dispute with its creditors over sovereign bond payouts.
The $500 million limited life Argentina Master Fund generated net returns of 18 percent since opening to outside investors in January 2015. [here]
Argentina’s return to global credit markets followed the election in November of President Mauricio Macri. He spent the first months of his term resolving a mountain of litigation that followed a $100 billion default in 2002, including a deal with “hold-out” creditors who had refused to accept the terms of earlier debt restructurings.
“We launched the fund as a limited life SPV (special purpose vehicle) to position in front of the Argentine elections in order to take advantage of anticipated political change and a subsequent resolution of the bond hold-out dispute,” a Brevan Howard spokesman said.
In contrast to the Argentine fund, Brevan’s main macro fund has struggled, with investors pulling out billions, reducing assets to $17.6 billion at the end of March from $27 billion two years ago.
Reporting by Maiya Keidan; editing by Adrian Croft