For the last fifty years, Argentina has followed the economic policies of Juan Perón. This has proven disastrous for Argentina’s economy. Extreme inflation and economic stagnation ascerbated by graft and corruption have compelled many Argentinians to seek opportunities elsewhere.
Amid the economic chaos, Highland Capital saw investment opportunities in Argentina. The Dallas based company has offices in São Paulo and Buenos Aires. Mauricio Macri Argentina’s sitting president has been working to eliminate Perónist practices and make his nation a more appealing place for investors. Read more about Highland Capital at prnewswire.com.
Examples of Macri’s “market-friendly” policies are the removal of currency controls and increased energy tariffs. Complimenting the aforementioned reforms, are Argentina’s natural resources and highly educated workforce.
When Argentina rejoined the capital markets worldwide the nation’s Emerging Markets Bond posted a return of 8%. This was 2% higher than the highest yield ever achieved on an EMB. Global investors took notice and Argentina raised $16.5 billion dollars to apply towards relieving its national debt.
Confident that an economic turnaround was coming to Argentina Highland Capital got in on the ground floor. That was pre-Marci and when Marci was elected on a platform of economic reform Highland Capital’s belief in the future of Argentina was proven right. Highland’s investment strategy centers on bonds that mature in five to fifteen years. with a 6.5% and 7% return. Visit highlandcap.com to know more.
Even before President Marci’s victory Highland Capital Management already had a plan for turning reform into investment opportunities. Investing in the debt of Argentina’s 23 provinces is another opportunity Highland has seized upon. The company has already seen a return on its investment in Argentina’s defaulted debt.
Economic reforms have resulted in more Argentinian business turning to stock offerings to raise funds. In response, Highland is planning to increase its equity holdings in Argentina.
Investment in Argentina still carries some risks. The nation’s economic health can be adversely affected by neighboring economies. The reforms that are in place are not enough by themselves and more needs to be done. All of this not withstanding Highland Capital Management’s faith in Argentina as the next great opportunity for global investors remains steadfast.