These Venezuela-Dedicated Hedge Funds Lost Faith in Their Bond Bets
Venezuela in Default After Missing Debt Payments
This article is for subscribers only.
It may be in their name, but Venezuelan-dedicated hedge funds aren’t so dedicated to Venezuela anymore. Even the boldest money managers are losing hope that the oil-rich nation can keep servicing its debt.
Russ Dallen, who oversees the Venezuela Opportunity Fund, last month told clients for the first time in his career to buy credit-default swaps to protect against a default. Gramercy Funds Management, which started a Venezuela Opportunity Strategy fund in 2015, sold its Venezuelan assets late last year. And Ashmore Group Plc, known for its bullish comments on Venezuela, cut its exposure during the past 12 months.