Top Macro Fund That Shorted Everything Is Buying Emerging Marketing Debt
The (Bloomberg) There is value in emerging-market sovereign debt, according to Mark Nash, who had previously been pessimistic about bonds, including Treasuries and credit.
Nash, who is in charge of the Jupiter Strategic Absolute Return Bond Fund, which outperformed its peers by 96% this year, stated, “We shorted everything. However, “we do like local unhedged developing market bonds.”
Nash recommends the securities offered by Brazil, Indonesia, and Mexico, some of the best-performing sovereign debt this year as a result of a boom in commodities, early rate increases, and waning concerns about a hawkish Federal Reserve. With inflation mostly under control and their appeal increased by positive real rates, he believes they only stand to gain more.
For the fund, the wager is paying off as it increased 5.7% this year despite a record yearly decline in US government bonds. In 2022, Brazil’s debt has increased by 11%, while Mexican notes have increased by 5%. Treasury investors, however, experienced a 12% loss.