Wall Street Journal - Hedge Funds Get Ready for the ‘Donroe Doctrine’ Trade

By Caitlin McCabe

Call it the “Donroe trade.”

After the brazen capture of Venezuelan strongman Nicolás Maduro, investors are racing to capitalize on President Trump’s ambitions to dominate the Western Hemisphere.

Hedge funds and other investment firms, already boosted by a sharp rally n Venezuelan debt, are mapping out trips to Caracas to scope out on-the-ground opportunities. Some are investigating niche instruments, like arbitration claims and unpaid state debts.

Lee Robinson is quoted at tthe end of the article discussing Cuba

“People are looking at Cuba for the next domino to fall,” said Lee Robinson, founder of London-based hedge-fund firm Altana Wealth. The firm is up an estimated 30% in its credit opportunities fund since the start of the year, bolstered by bets Altana made on Venezuelan debt more than five years ago.

Robinson said Cuba was a very small market and was hard to invest in. But he said, citing Oaktree Capital Management co-founder Howard Marks: “There are no bad assets, only bad prices.”

You can read the full article here