Hedge Funds Reap Gains on Argentina Bets as Trump Steps In (1)

Hedge funds that wagered big on Argentina in recent months notched bumper gains in October after a US rescue package and a resounding win for President Javier Milei’s party in midterm elections sparked a surge in the nation’s financial markets.

Two funds overseen by Redwood Capital Management posted a combined gain of about $129 million on Argentina bets last month, according to a person with knowledge of the matter. Shiprock Capital Management advanced 6.4% in October, its second-best month on record, according to an investor letter seen by Bloomberg. The gains were mostly driven by positions in Argentine sovereign ...