'Messed up' Argentina a great buying opportunity -Morgan Creek's Yusko
By Luciana Lopez and Sam Forgione
NEW YORK Oct 29 (Reuters) - Argentina's ongoing debt worries and soaring inflation might be scaring some investors away, but those very factors make the South American country appealing, Mark Yusko, head of the $4 billion Morgan Creek Capital Management, said on Wednesday.
"It's so messed up," he said, speaking at a Reuters summit. "I love messed up."
Argentina has recently made headlines for a debt default and its worrisome economy, not for being an investor darling.
The country defaulted in July after refusing to honor court orders to pay $1.33 billion plus interest to U.S. hedge funds suing for full payment on bonds following its earlier 2002 default.
Because of that controversy, he said, Argentinian bonds are "one of the best investments on the planet right now."
Inflation has also been a nagging worry in Argentina, surging toward an estimated 40 percent this year. A black market for scarce dollars has thrived.
But those are the very factors that draw Yusko to Argentina, he said. Unlike some countries with steadier economies, he said, upside remains for the country.
"It's just stupid cheap," he said, adding that Morgan Creek has exposure to Argentina through energy company YPF, Banco Macro and Pampa Energia. Continuación...