Hedge Fund's Bets on Distressed Emerging Markets Pay Off.

Shiprock Capital Management, a first-year hedge fund, has achieved a 26% return on investments in distressed emerging markets such as Ukraine, Pakistan, and Sri Lanka. The fund's success is attributed to its focus on short-term geopolitical and economic disruptions, allowing it to constantly adjust its portfolio and take advantage of opportunities. The strategy has been particularly effective in 2023, with the top-performing bonds in developing markets coming from distressed nations. Shiprock's performance stands out among emerging-market hedge funds, which have an average return of 2.95% this year. [Extracted from the article]