Ukraine's About to Embarrass Some Investors

Investing on the basis of fundamentals and ignoring "noisy headlines" is not always a good idea.

Past performance is not indicative of future returns.

SERGEI SUPINSKY/AFP/Getty Images

Bond guru Michael Hasenstab has probably made the most embarrassing mistake of his stellar career. Ukraine, on whose bonds he made a risky bet while President Viktor Yanukovych was still in power, is beginning to talk to international creditors about restructuring its foreign debt. The negotiations will be tricky, and even if the Ukrainian government makes its inevitable default relatively painless, Hasenstab stands to lose significant money on his investment.

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