Hedge Funds

Emerging market events pay dividends for Adelante’s sovereign Exotic Debt strategy


Julian Adams
Dramatic recent events in the Arab world, Africa and other developing regions have delivered strong gains for one highly individual hedge fund strategy that is invested in some of the least crowded areas of the sovereign emerging market debt space.

The Adelante Exotic Debt Fund – a sovereign event-driven strategy that specialises in investing in securities from embargoed countries like Sudan, North Korea and Cuba – is up by 10% already this year after sharp spikes in the value of some of its principal holdings.

The re-rating of the debt of some of