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Matthias Knab reports from Latin America: The Patagonia Argentine Recovery Fund is managed by MBA Banco de Inversiones, the leading Argentine Investment Bank. MBA was ranked #1 Investment Bank in Argentina for second year in a row by Global Finance and S&P Micropal. The bank has a 25 year history and boasts international shareholders (Franklin Templeton is the largest institutional shareholder). MBA’s mutual fund have significantly outperformed its benchmarks. The firm is also a leading private equity player.
The fund is an absolute return fund with event driven focus designed to take advantage of investment opportunities in Argentina. Since inception in October 2003, the fund returned 50.9% (2004: 26.3%, 2005: 16.9%, target 2006 is 15%). For January 2006, the fund returned +2.23%, February (est.) is +1.10%. The US150m fund invests in Argentine-listed equities and corporate bonds, sovereign bonds, local currency instruments, bank loans and interest rates.
According to the fund management, the present Argentine economic climate strongly supports Patagonia’s strategies: During 2005, Argentina’s economy grew 9% and primary surplus was +3.5%. Current account surplus was 1.6% and trade surplus of US$ 11bln was mainly supported by high real exchange rate and sustained prices of commodities. For 2006, the fund management expects the economy to grow at 5.5% to 6.5%; trade and primary surpluses to remain strong and excess supply of dollars to continue. In addition, the Peso i...................... To view our full article Click here
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