The headline ruling in yesterday’s battle between Argentina and what are known as the “hold out hedge funds” was that Argentina cannot compensate those who agreed to a settlement without compensating holdouts as well. In regards to this, the deep pocketed holdouts are likely waiting by their phones for Argentina’s President Cristina Kirchner to make the first move in this chess game. But it was the second ruling that likely might be the motivator that changes outcomes. This is where NML Capital, one of the hedge fund holdouts operated by Paul Singer, was granted discovery into Argentina’s global financial transactions….
Secondary Ruling Against Argentina Has Intimidating Bite
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.