A hedge fund reportedly lost $1 billion in August betting on Argentina’s economy recovering

FAN Editor

Argentine unions, small firms and activists march near Argentina’s Congress to demand changes in President Mauricio Macri’s economic policies, in Buenos Aires, Argentina April 4, 2019.

REUTERS | Agustin Marcarian

One of the better performing hedge funds reportedly took a heavy loss last month, as a big bet on Argentina’s economy went sour.

Autonomy Capital lost about $1 billion, or about 23%, in August after taking a large position in Argentina’s 100-year-bonds, the Wall Street Journal reported on Wednesday. The hedge fund began betting on Argentina recovery last year, the report said.

Run by Robert Gibbins – who reportedly has a penchant for concentrated positions – Autonomy was managing about $6 billion at the beginning of August, the WSJ said. Additionally, the report said that the fund had been doing well before the loss, gaining 17% in 2018. This year is marking a rebound for the hedge fund industry so far, with widespread gains vaulting funds in the first half of 2019.

Argentinian markets were sent into a turmoil after the country’s primary election in August, as it appears pro-business president Mauricio Macri may lose re-election soon.

The WSJ said Gibbins is standing by his position, expecting Argentina will yet recover. In the past few weeks, the report said Autonomy has spoken to current investors about adding money to the fund.

Read the full report by the Wall Street Journal here.

Free America Network Articles

Leave a Reply

Next Post

DocuSign rises 19% on revenue beat and strong guidance

DocuSign CEO Dan Springer. Source: DocuSign Shares of enterprise cloud company DocuSign shot up about 19% Friday morning after the company reported better-than-expected revenue and strong guidance. The rally added about $1.5 billion to the company’s market cap, bringing it to $9.6 billion. For its second quarter of 2020, DocuSign […]