Hedge Funds Are Winning in Puerto Rico

Debt holders like Golden Tree and Baupost are making out on a trade that got slammed by Hurricane Maria.

Homes without electricity in the town of Jacanas, Yabucoa, Puerto Rico, May 2018. (Xavier Garcia/Bloomberg)

Homes without electricity in the town of Jacanas, Yabucoa, Puerto Rico, May 2018.

(Xavier Garcia/Bloomberg)

Nearly a year after Hurricane Maria pummeled the island of Puerto Rico, the hedge funds holding defaulted Puerto Rican debt are sitting pretty.

While fate of these Puerto Rican bonds is in the hands of a federal court following the commonwealth’s bankruptcy last May, the hedge funds still holding them have seen their prices more than double this past year.

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