The next investing hotspot is way south of the border, according to a hedge fund manager.
Despite effectively being shut out of global markets for the past 15 years, Argentina is rapidly emerging as one of the more intriguing locations for return-hungry investors — thanks largely to President Mauricio Macri being elected in 2015.
“There’s a lot of opportunity in Argentina, and there aren’t a lot of places in the world with a similar return profile and with a big tailwind,” David Tawil of Maglan Capital told our Carleton English over coffee at a recently opened posh Buenos Aires hotel.
Tawil’s remarks mark a stark contrast to how Argentina was perceived just a few years ago, when the country — led by former President Cristina Kirchner — was embroiled in a bitter 15-year-long battle with hedge fund Elliott Management over defaulted bonds.
“Argentina has been locked out of international markets for years, so there aren’t necessarily the professionals here who can do all that can or must be done,” Tawil said
“Everyone is putting their hopes on Macri, and so far, that hope has been vindicated,” Tawil said.