A key figure in Paul Singer's epic Argentina trade is stepping down

Paul singerWorld Economic Forum via FlikrElliott founder Paul Singer.

A key portfolio manager behind Elliott Management’s infamous Argentina bet is stepping down.

Jay Newman, a lawyer who joined New York-based Elliott in 1995, is stepping down and will act as a consultant for Paul Singer’s $31.6 billion hedge fund firm, according to a January investor letter reviewed by Business Insider.

“Newman has decided to retire from being a Senior Portfolio Manager and being involved in the hedge-fund industry on a full-time basis,” the investor letter added.

Newman didn’t immediately respond to a request for comment.

In the early 2000s, Elliott started buying up Argentinian debt following the country’s economic collapse. According to a 2016 Wall Street Journal report, Newman’s thinking on the matter went like this: “If Argentina’s economy improved, the bonds would gain in value. If the nation defaulted, Elliott would join a creditor committee, as in any restructuring, and push to profit from a debt restructuring.” Newman became a public representative for Elliott over time, speaking to financial news outlets about the matter.

Last year, Argentina agreed to pay $4.65 billion to Elliott and three other hedge funds to settle its debt saga. Elliott reaped gains of 10 to 15 times the money they put on the wager 15 years prior, yielding $2.4 billion, according to the Journal report.

Elliott’s flagship fund returned 4.4% for the fourth quarter of 2016 and 13.1% last year, according to the investor letter.

NOW WATCH: We got our hands on the $44,000 watch that only 352 people can own

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.