Argentina: Playing the Odds.
In today’s World Cup Final, Argentina is a 3 to 1 underdog. Maybe enticing odds for soccer fans, but miniscule for a world famous hedge fund guru’s bet on the land of Patagonia.
Paul Singer launched a hedge fund in 1977. He is known as one of the first high profile “vulture investors,” and his fund, Elliott Management, invests opportunistically, with more than a third of its portfolio in distressed debt across the industrial and real estate industries, as well as on that of sovereign nations.
11 years ago, Singer invested $84 million in Argentina bonds that subsequently went into default. After three major legal victories and searching the world for missing assets, Singer is just weeks away from collecting $832 million on his original investment. If this happens, he will realize a tidy 1,600% return on his investment.
Singer is also an activist investor, where he battled to win three board seats on Hess Corp in efforts to unlock value and increase returns to shareholders. Since inception, Elliot Management has delivered annualized returns of 14%.
Elliot Management Holdings: I use a service called Insiderscore.com to track insider buying of companies and funds. Here’s the current holdings for Elliot Management.
Crowdfunding and Drinkable Meals
I have a soft spot for start-ups and supplements. Crowdfunding is a way for someone to raise money for their idea or cause by putting it on the net for prospective investors.
I’m on site called Indiegogo and come across Ambronite, a real food drinkable supplement. The investment proposition is to invest by pre-ordering the meals. So, I put in for $79 in hopes that someday 10 drinkable meals will arrive at my door. They more than doubled their $50,000 goal.
If youre not familiar with crowdfunding, here’s a list of crowdfunding sites. I must warn you that this could become a real time suck. You come across so many interesting ideas, and most appealing to me, is the strong sense that the entrepreneurial spirit is alive and growing!