Page Reader AI | The Hedge-Fund Trade of the Year: Betting on Argentina’s Chain-Saw-Wielding President

The Hedge-Fund Trade of the Year: Betting on Argentina’s Chain-Saw-Wielding President - WSJ

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Key Investment Trend: Argentina

Wall Street's hottest new investment is not in tech, but in Argentina's volatile economy. Hedge funds and money managers are placing substantial bets on President Javier Milei's ability to successfully reform the country's long-struggling economy.

Significant Returns

This strategy has yielded impressive results. Buenos Aires stocks are on track to become the world's top performers in 2024, and government bond prices have surged. An exchange-traded fund (ETF) tracking the MSCI Argentina index has shown gains exceeding 60%.

The hot new trade on Wall Street has nothing to do with crypto, electric vehicles or artificial intelligence. It’s Argentina—the country infamous among investors for serial debt defaults.Hedge funds and other money managers have piled into Argentine markets this year, betting President Javier Milei can overhaul a long-suffering economy. The trade has paid off handsomely, with Buenos Aires stocks on pace to finish 2024 as the world’s best performers and government bond prices soaring. An exchange-traded fund tracking the MSCI Argentina index is up more than 60%.