It works like this: find companies that are resilient, even if there’s a war a few hours away, sky-rocketing inflation or worries that the government can’t pay its debt. And while diving into markets like Argentina and Ukraine isn’t for the faint of heart, specialist investors say there’s money to be made hunting down the right bargains.
Dimitry Griko, who founded London-based Arkaim Advisors to focus on corporate credit in emerging markets, is among those reaping the rewards. His $317 million Emerging Markets Corporate High Yield Debt Fund delivered a 15% return in the past year and ranking in the 99th percentile for five-year and three-year performance. He counts Argentinian and Ukrainian companies among his top three holdings.
Investors, however, are more optimistic about Argentina’s booming oil fortunes. The July 2027 bonds of state-run driller YPF SA have handed investors a return of 25% so far this year and trade at 84 cents.