Elliot Associates is a hedge fund based in New York.
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Paul Singer created Elliott Associates in January 1977, starting with $1.3 million from friends and family. In its earliest years, the firm focused on convertible arbitrage. However, since the 1987 stock market crash and early 1990s recession, the firm has focused primarily on distressed debt investing.
Elliott is noted for its relatively high returns and low volatility. During its 27-year history, Elliott has never appreciated more than 25% in a year but has still managed to achieve a 14.1% average annual return. Over its life, Elliott has outperformed the S&P 500 by 130 basis points but with one third of the index's volatility.[1]
A small portion of Elliott's portfolio is dedicated to distressed sovereign debt, most recently that of Argentina and the Republic of the Congo. Elliott is well-known for its purchase of Peruvian sovereign debt. Elliot purchased debt with a face value of $20 million for $11 million. After extensive and costly litigation and numerous attempts at reaching a settlement, the court awarded $58 million to Elliott, including past due interest. More recently, Elliott has exposed serious corruption in Congo-Brazzaville in its efforts to enforce judgments totaling more than $100 million in defaulted bank debt. [2][3]
In May 2011 it was reported that Elliot Associates, wanted to put its directors on the board of the British transport firm National Express and break up the company, selling off its assets.[4]