U.S. fund managers, including Pegasus Funds and Southern Cross, are taking advantage of bargains in Argentina, Reuters reports. With the peso deeply devalued, fund managers are now not just buying stock in but actually buying up large portions or controlling interest in companies in leading industries, food and telecommunications companies. Last year alone, Argentinas economy contracted 10.9%, putting strains on consumer spending and corporate earnings. The nations peso has fallen 70% in value since January 2002, when Argentina defaulted on its debt. The nation still owes $76.7 billion. However, in the first five months of this year, Argentinas economy grew 6.1%.
"You are getting companies for half the price that you would for firms of similar quality and technology in the rest of the world," economist Miguel Bein said of Latin Americas third-largest economy.