Caracas Capital has created a fund to take advantage of our deep expertise, extensive trading strength, demonstrated legal experience and knowledge of historical precedent in default situations to put bondholders in the senior, unsubordinated, superior-ranked bonds.
The fund hedges positions to cushion the downturn that results from a probable default while still passing through the large coupon payments.
In addition -- should there be a default -- the fund will represent our bondholders with strength in numbers as a group to try to make sure that our bonds get paid back in full -- with interest and interest on our interest -- as smart investors in the Argentina default situation achieved.
In short, the Venezuela Opportunity Fund is an exchange-traded fund designed to generate returns on investments in Venezuela and PDVSA, before, during and after a possible default. Traded on the Vienna Stock Exchange, the Venezuela Opportunity Fund offers the returns of a hedge fund with the transparency, liquidity and security of an exchange-traded product.
In addition to trading on one of Europe’s oldest exchanges, the Venezuela Opportunity Fund has an ISIN (International Security Identification Number) and trades in Euroclear so that investors hold the Venezuela Opportunity Fund in their own accounts. IA Capital launched the exchange-traded Venezuela Opportunity Fund with a €5 billion filing in 2016.