New York (HedgeCo.net) – Argentina has been the source of speculation for years for distressed debt hedge funds and there has been animosity between investors and the government. Even though the country has only gone through one round of its election process, the fact that the incumbent Cristina Fernández de Kirchner is out of the picture is already yielding results for hedge fund investors.

According to a recent report from the Wall Street Journal, several Argentine-focused hedge funds have soared in the weeks following the first round of the election process. According to the article, Bienville saw its fund gain 33% in October, Brevan Howard’s Argentina fund climbed 22%, Redwood Capital’s Argentina fund was up 10% for the month and Fir Tree Partners saw their bets in Argentina climb approximately 20% during October.

While most of these funds went in to the investments with a longer investment horizon in mind, their investments are seeing an immediate turn around. Part of the success can be attributed to the fact that the Mayor of Buenos Aires, Mauricio Macri, had a strong showing in the first round of the presidential election and Macri is considered to be a business friendly candidate.

Rick Pendergraft
Research Analyst
HedgeCoVest