Hasenstab's bet on Argentine debt is only getting more dangerous - Business Insider

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Star fund manager's bet on $4.3 billion worth of Argentine debt is dangerously close to unraveling

Franklin Templeton and its star money manager, Michael Hasenstab, have $4.3 billion worth of Argentine bonds as the country marches towards restructuring,Officials in Argentina say the restructuring agreement will not do any favors to investors, Bloomberg reported.

That's as it's becoming increasingly likely that the government will have to restructure its debt. The country's Economy Minister Martin Guzman said Wednesday that Argentina won't let international financial firms "set the guidelines on macroeconomic policy." Instead, he said, the debt restructuring will be focused on reviving the Argentine economy after its currency and economy collapsed — that won't entail attractive terms for investors, Bloomberg reported.

But Templeton's bets on Argentina have been big, and spanned multiple funds. Its emerging markets fund, which is 5.6% Argentine assets, has done worse than 98% of its competitors this year, Bloomberg reported. Hasenstab, who increased his stake in Argentina after its 2018 currency crisis, likely hopes that restructuring will provide relief and reward. But there's no guarantee that this restructuring will follow the same path that his European bets did, Bloomberg reported.

 

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