How long do you hold a trade for? Paul Singer has been holding his Argentinian bond position, and fighting over it, for 15 years!
In brief, the trade was to buy Argentinian debt, which was trading around 20c in the dollar
If Argentina's economy improved, the bonds would gain in value. If the nation defaulted, Elliott would join a creditor committee, as in any restructuring, and push to profit from a debt restructuring.
This week, the Argentinian government has agreed to pay to settle claims with 4 hedge funds over defaulted debt
- As part of the settlement, Singer's hedge fund Elliot Management Corp. has reaped a $2.4bn profit on the trade
The Wall Street Journal have the details here (may be gated), and there is an ungated Bloomberg piece here.
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Wow. 15 years!
Still, I've been on some forums where dudes wait longer than that for a gap to fill. Not to make $, just so they can be "right". :-D
