Hedge fund Discovery Capital Management, led by Rob Citrone, has advanced more than 20% so far this year, driven in part by strategic positions in Argentine assets, according to a report by Bloomberg citing unnamed sources familiar with the fund.

Citrone increased exposure to Argentine dollar bonds in early September following a sharp market drop after President Javier Milei’s party suffered a major provincial election loss. Some yields on the bonds exceeded 20% at the time, prompting Citrone to add to his positions. He has not added further since then.

Investor confidence in Argentina received a short-term boost after US Treasury Secretary Scott Bessent announced plans to extend a $20bn swap line to the country and purchase its foreign bonds. The move supports Milei ahead of the 26 October mid-term elections and has lifted sentiment among other bondholders, including Fidelity, T Rowe Price, and Pimco.

Citrone, who has long viewed Argentina as a key investment theme, focuses on a mix of equities and dollar-denominated bonds maturing in 2029 and 2030 with semi-annual amortisations of up to 10%. He believes that rising exports of minerals, oil, gas, and agricultural products could generate a $5bn–$6bn annual trade surplus in the next few years, potentially lifting Argentine bonds to investment-grade levels by 2030.

Discovery’s strong performance builds on last year’s 52% gain, which was also supported by the manager’s Argentina strategy. Through July 2025, the fund had returned 17.5%, rising to roughly 21% by mid-September. Citrone declined to disclose the exact portion of the $2.8bn fund allocated to Argentina but confirmed the country remains one of his top three investment themes.