NEW YORK (Reuters) – A Brazilian hedge fund was among the casualties of Monday’s market rout on Argentine assets, with at least 75 percent of its equity exposure suffering losses between 25% and 59%.
Newfoundland Capital Management, based in Sao Paulo, was hit with a loss on paper of around $55 million, as its bets on four Argentine companies in agribusiness, natural gas, energy distribution and telecommunications imploded.
Filings - % - Newfoundland - Portfolio - New
According to regulatory filings, just over 50% of Newfoundland’s portfolio is split in New York- and Buenos Aires-traded shares of agribusiness Cresud , stocks that fell on Monday 38% and 25%, respectively.
U.S.-traded shares of electricity distributor Edenor , which plummeted 59% on Monday, amount to over 16% of Newfoundland’s portfolio.
Paper - Losses - Companies - Loss - Newfoundland
The one-day paper losses in those two companies alone amount to nearly $50 million. The remaining loss comes from Newfoundland’s exposure to Telecom Argentina ADRs , which was down 33% on Monday, and Transportadora de Gas del Sur , which fell 48%.
The most recent regulatory filings, from last May, list holdings as of March 31. Newfoundland did not return calls or emails seeking comment or confirmation of any material change in its positions since. The Argentine local filing in Cresud shares is as of June 2018.
Filings - Fund - Positions
Previous filings show the fund has mostly been building up its positions in...
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