- World Economic Forum via Flikr
A key portfolio manager behind Elliott Management’s famous Argentina bet has stepped down.
Jay Newman, a lawyer who joined New York-based Elliott in 1995, will act as a consultant for Paul Singer’s $31.6 billion hedge fund firm, according to a January investor letter reviewed by Business Insider.
“Newman has decided to retire from being a senior portfolio manager and being involved in the hedge-fund industry on a full-time basis,” the investor letter said.
Newman didn’t immediately respond to a request for comment.
In the early 2000s, Elliott started buying up Argentinian debt after the country’s economic collapse. According to a 2016 Wall Street Journal report, Newman’s thinking on the matter went like this: “If Argentina’s economy improved, the bonds would gain in value. If the nation defaulted, Elliott would join a creditor committee, as in any restructuring, and push to profit from a debt restructuring.” Newman became a public representative for Elliott over time, speaking to financial news outlets about the matter.
Last year, Argentina agreed to pay $4.7 billion to Elliott and three other hedge funds to settle its debt saga. Elliott’s bet yielded $2.4 billion, about 10 to 15 times as much money as the hedge fund put on the wager 15 years before, according to the Journal report.
More recently, Elliott’s flagship fund returned 4.4% for the fourth quarter of 2016 and 13.1% for last year, according to the investor letter.