Economist Channel

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's bet yielded $2.4 billion, about 10 to 15 times the money the hedge fund put on the wager 15 years prior, according to the Journal report.