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Franklin Templeton fund manager lost $1.8 billion in one day on Argentina bets: Financial Times
CNBC
Wed, 14 Aug 2019 18:19

Franklin Templeton fund manager lost $1.8 billion in one day on Argentina bets: Financial Times

CNBC
Wed, 14 Aug 2019 18:19

A view of Exchange house in Buenos Aires, Argentina.

Franklin Templeton fund manager lost $1.8 billion in one day on Argentina bets: Financial Times
Argentina Peso weakened substantially after Primary Presidential Elections.

Federico Rotter | NurPhoto | Getty Images
A star fund manager at Franklin Templeton lost $1.8 billion on Monday due to the market slide in Argentina, according to the Financial Times.

Michael Hasenstab, a fixed-income fund manager, had several large positions in the Argentina bond market. The financial markets in the country plunged after a surprise result in primary elections. President Mauricio Macri, the center-right incumbent, lost by a larger than expected margin, raising concerns about populist leaders gaining control of the country.
Argentinas stock market lost more than 30% on Monday, and the Argentine peso also fell significantly.

Several funds run by Hasenstab had large positions in Argentine bonds, creating a cumulative loss of nearly $1.8 billion for the day, according to Financial Times calculations.

Franklin Templeton reported that it had roughly $715 billion in assets under management as of June 30. The company declined to comment.

Read the full story here.