Argentina’s looming presidential election, which could herald a change in regime, has prompted Vista Capital, the manager of one of Brazil’s best-performing hedge funds, to build a position in the country through ADRs, according to a report by Reuters.
Argentina’s looming presidential election, which could herald a change in regime, has prompted Vista Capital, the manager of one of Brazil’s best-performing hedge funds, to build a position in the country through ADRs, according to a report by Reuters.
The report cites an unnamed source familiar with the matter as revealing that the bet by Vista, which was founded in 2014 by Joao Landau and Joao Lopes, and manages over $1bn in assets, is small, but based on the company’s belief that “2024 could bring in positive shocks in politics and the economy”.
In a recent letter to investors, Vista wrote: “A more significant regime change, which would include a more front-loaded fiscal adjustment and a robust reform agenda, would allow for a relevant re-pricing of assets. We see interesting asymmetries in some sectors of the stock market, especially in financials.”
Argentine assets have rallied in the past month with the $70 million Global X MSCI Argentina ETF now up 36% since the beginning of the year, and the nation’s bonds due in 2035 are up 4 cents on the dollar in the past month to around 31 cents.
