The good news of minimum, is that the structural anger of the fund of Larry Fink against the country generated by the financial instability of Argentina and the way in which the debt was restructured in August 2020, would be ending. And not for sentimental reasons, but because your actual investments in the country would be making you money. Not much, but your local overview has been in the blue for a few months now.
BlackRock, it is known, maintains in its portfolios a large part of the bonds received in the restructuring program headed by Guzmán, which today, and despite an improvement since Massa arrived at the Palacio de Hacienda, is sailing at an almost default price, with an average value of approximately 37% when the cutoff Net Present Value (NPV) was 54.8%.
The message of a certain peace towards Buenos Aires had been brought months before by Paul Goldberg, a compatriot master of the Di Tella University, who holds the position of head of research and portfolio manager for BlackRock’s Emerging Market Debt Team; which makes him a person with a double added value in the organization. He is an expert in emerging markets and a specialist in debt, with the dna of having lived with local crises. The fund gave him the task of following the extremely complicated Argentine casetaking into account that only a Creole of law can understand what is happening in the local market.
BlackRock seems not to be dissatisfied with the rest of its holdings. Or at least it did not reduce its presence in the Argentine real economy in all these years of the current ruling party in power. He also gave no sign of dissatisfaction with his holdings in companies in several key industrial and service sectors. In some, such as YPF, he even gave signs of satisfaction in the last shareholder meetings; after the key data of a total return this year of more than 130% in pesos (40% real against inflation).
Fink’s fund accepted the restructuring organized at the beginning of Alberto Fernández’s administration by the former president of the oil company Guillermo Nielsen, as well as an important portion of the oil company’s shares. BlackRock owns 5.67% of the package, with 9.77 million shares in its possession. The world’s largest fund also has an important presence as Argentina’s partner in the real economy. Not only because of his involvement as a shareholder in multinationals with a strong local presence such as Coca-Cola, Bayer, Apple, Microsoft, Telefónica or Procter & Gamble (among others); but as the owner of shares of several of the most important companies in the market such as Mercado Libre, Tenaris, Grupo Galicia, Banco Macro, Telecom, Pampa Energía, TGN, Arcos Dorados and Adecoagro.
Source: Ambito
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