Baupost Sheds Puerto Rico Debt That Drove Ivy League Protest
- Firm dropped stake in early 2019, when debt was restructured
- Restructuring delivered bigger gains than initially expected
Photographer: Christopher Gregory/Bloomberg
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Baupost Group, which was targeted by student divestment campaigns over its investments in Puerto Rico bonds, exited its position in the bankrupt territory’s debt in first quarter of 2019, according to an investor letter seen by Bloomberg.
The firm’s decision to shed its stake came during the same period when Puerto Rico allowed owners of its sales-tax-backed debt to trade in their securities for new bonds at a discount, sharply cutting what the island’s government owed in the biggest restructuring so far in its record-setting bankruptcy. The bonds traded heavily after the restructuring as hedge funds and others that speculated on the outcome locked in their gains.