The long running feud between bond investors and Argentina, which recently defaulted on its government bond obligations, the second such default in 13 years, continues to rage, but this time with a new wrinkle.
Two large hedge funds, Gramercy Funds Management LLC, with $3.9 billion under management, and Elliot Management Corp., with $23.3 billion under management, are taking very different approaches to solving the problem. Gramercy, who has been advising Argentina behind the scenes to restore the country’s international reputation, is cooperating with the South American nation so that it can once again access capital markets. Elliot, who has a long history of confrontation with Argentina over default on its debt, including attempting to repossess the Argentine president’s plane as it was refueling, has termed the Gramercy-led solution “beyond bizarre” and “impractical” in a letter to investors.
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