Economics
GMO’s Bond Fund Rises 30% as Argentina, Venezuela Bets Rebound
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Thomas Cooper’s emerging-market bond fund fell 33 percent last year when bonds from Argentina, Venezuela and Ukraine plunged during the financial crisis. The fund gained 30 percent this year as investors regained an appetite for risk, bidding up those same bonds.
Cooper, co-manager of the $2.1 billion GMO Emerging Country Debt Fund, said he favors the hardest-to-sell, highest-yielding bonds because their rewards more than make up for their risks.