Redwood Said to Follow Gramercy in Setting Up Argentina Fund

Redwood Capital Management LLC, a $6.7 billion hedge fund that focuses on distressed debt, started a fund last week to invest in Argentine assets, according to a person familiar with the matter.

The $160 million fund, which can hold the assets of any entity with the majority of its operations in the South American nation, was the result of an inquiry by a small group of investors, said the person, who asked not to be identified because the information is private. The Redwood Argentina Fund started Oct. 20 and is the first fund to specialize in a specific theme for the Englewood Cliffs, New Jersey-based company, said the person.