How One Hedge Fund Made $2 Billion from Argentina’s Economic Collapse

Washington Post

How One Hedge Fund Made $2 Billion from Argentina’s Economic Collapse

By Renae Merle

When Paul Singer’s Elliott Capital launched a 15-year battle to wrestle billions out of Argentina for lapsed debt payments, it wasn’t the first time the hedge fund had taken on a foreign government.

Argentina’s bonds, for example, did not include a collective action clause, which would have forced all bond holders to go along with a settlement if the majority of them agreed. Those types of clauses have become common in recent years, but there are still many bond deals without such protections, said Eric LeCompte, executive director of the anti-poverty organization Jubilee USA, who has tangled with Singer and other debt holders in the past.

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