Paul Singer’s Elliott Management last month not only won a key legal battle against Argentina — its hedge funds also outdid the stock market.
Elliott International, its offshore fund, gained 0.9 percent for the month, giving it a 7.1 percent return so far this year, according to a report Elliott sent to investors, a copy of which was obtained by The Post.
The smaller Elliott Associates fund posted the same near 1 percent gain last month — and is ahead 7.3 percent in 2013, according to the report.
While Elliott managed gains against a broader market that fell 3 percent in August, like most hedge funds it’s way behind the S&P 500 for the year.
Elliott is also trailing the Absolute Return Index of distressed hedge funds, which is up 7.9 percent for the year.
Elliott has total assets of $22.44 billion — only 4 percent more than it had at the end of December, according to the report.
The $646 million difference between asset growth and return represents, in part, redemptions as Elliott has not been raising new money to offset any outflows, according to a source.
But that is changing. The firm is now asking investors to fork over as much as $2 billion more by Sept. 16.
Their willingness to do so may hinge, in part, on the Argentina case.
Last month a US appeals court upheld a lower court ruling that Argentina would have to pay Elliott — and a small group other so-called holdout bondholders — $1.3 billion whenever they paid the much bigger group of bondholders who agreed to restructure Argentina’s defaulted bonds.
Argentina President Cristina Kirchner has long said the South American country will not pay the Elliott group and has asked the Supreme Court to review the case.
Despite Elliott’s recent win, such comments are discouraging some long-term Elliott investors. “ I just don’t think they are ever going to get their money,” one told The Post.
Elliott International, its offshore fund, gained 0.9 percent for the month, giving it a 7.1 percent return so far this year, according to a report Elliott sent to investors, a copy of which was obtained by The Post.
The smaller Elliott Associates fund posted the same near 1 percent gain last month — and is ahead 7.3 percent in 2013, according to the report.
While Elliott managed gains against a broader market that fell 3 percent in August, like most hedge funds it’s way behind the S&P 500 for the year.
Elliott is also trailing the Absolute Return Index of distressed hedge funds, which is up 7.9 percent for the year.
Elliott has total assets of $22.44 billion — only 4 percent more than it had at the end of December, according to the report.
The $646 million difference between asset growth and return represents, in part, redemptions as Elliott has not been raising new money to offset any outflows, according to a source.
But that is changing. The firm is now asking investors to fork over as much as $2 billion more by Sept. 16.
Their willingness to do so may hinge, in part, on the Argentina case.
Last month a US appeals court upheld a lower court ruling that Argentina would have to pay Elliott — and a small group other so-called holdout bondholders — $1.3 billion whenever they paid the much bigger group of bondholders who agreed to restructure Argentina’s defaulted bonds.
Argentina President Cristina Kirchner has long said the South American country will not pay the Elliott group and has asked the Supreme Court to review the case.
Despite Elliott’s recent win, such comments are discouraging some long-term Elliott investors. “ I just don’t think they are ever going to get their money,” one told The Post.
