Templeton’s Hasenstab Exits Argentina Bet After Losing Billions
- Holdings of country’s bonds have dwindled to just $250 million
- Wager has been pummeled by surging inflation and FX volatility
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Six years after placing a multibillion-dollar bet on Argentina’s resurgence, Franklin Templeton’s Michael Hasenstab appears set to finally exit the money-losing wager, concluding a painful chapter for the once-vaunted money manager known for his moonshot bets in emerging markets.
The firm sold more than 25 billion pesos ($156 million) of local bonds in the third quarter, filing data show. It’s continued to offload Argentine debt since then, according to people with direct knowledge of the matter, who declined to provide details on the size of the sales. Market participants say a spike in trading volume last month, particularly in inflation-linked bonds known to be held by Franklin Templeton, hints at a sizable retreat.