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New Argentina Fund Launched To Exploit Value

Tom Burroughes Group Editor London 31 March 2011

New Argentina Fund Launched To Exploit Value

Tapping into what are seen as undervalued opportunities in Argentina, Copernico Capital Partners has rolled out an Argentinian equity fund available via a Cayman-domiciled structure.

The Buenos Aires-based firm has launched the Argentine Equity Fund Copernico Capital Partners, which invests in firms with the aim of beating the local MERVAL equity market index. It is not offered to US investors.

“We believe the current situation in Argentina provides an opportunity for investors to earn outsized returns through a focused investment program.  Companies are trading at a significant valuation discount to regional peers; the Argentinean Peso is amongst the most undervalued currencies in the world.  Also, there is strong and continued demand for Argentina’s agricultural exports and an election will be held in October 2011, at which a change of leadership is a real possibility,” Ricardo Maxit, chief executive of Copernico Capital Partners, said.

Despite strong growth in the economy over the last decade, Argentina’s capital markets have become marginalised as a result of political and sovereign crises and self-imposed capital controls. In 2010, Argentina was reclassified by MSCI as a Frontier Market, the firm said.

Among other recent Argentina-themed fund launches has been the roll-out of the New York-listed Global X FTSE Argentina 20 ETF, which tracks the FTSE Argentina 20 Index of leading companies in the country.

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