Billionaire Builds Big Stake In Under-the-Radar ETF

George Soros had an old rule: invest first, investigate later. When a great opportunity seemed ripe for the picking, he would buy it, and figure out later if he was right.

It’s actually the opposite of what most funds do, which is to spend many months researching and dotting all their “i”s and crossing all their “t”s before patiently waiting for the price to get to the level they think is right.

When it comes to that old Soros rule, Stanley Druckenmiller, his former protege, has thoroughly adopted it. Remember Druckenmiller is the guy who had the 30%+ annualized gains for 30 years without ever posting a losing year while he was managing public money and now manages his own via the Duquesne Family Office.

So what is it that Stan Druckenmiller has spotted that should give investors pause?

Key Points

• Druckenmiller’s recent successful investments include Nvidia and Perplexity AI, and he is now focusing on Argentine ADRs due to confidence in new leadership.
• The Global X MSCI Argentina ETF (ARGT) is performing well, driven by optimism about Argentina’s economic future under Milei, suggesting potential for significant returns despite historical risks.

Why Pay Attention to Stan

If you haven’t paid close attention to Druckenmiller’s moves of late, he’s the one who spotted Nvidia before the rest of the market and rode it to massive gains. He’s also an investor in Perplexity AI, widely regarded as being a serious threat to both Google Search and Open AI. In short, he’s got a knack for spotting what’s coming next before the rest of the world.

And while quite a few of his biggest bets in recent times have been related to the AI theme, one under-the-radar bet is tied to macroeconomics. In a recent interview, Stan mentioned that new leadership in Argentina was a prime motivator for him to buy the top 5 ADRs related to the country.

He thinks Milei has won over the populace and they are willing to be patient with him – as evident by polling numbers – to allow him turn the country around.

Already the bet is paying off handsomely for Druckenmiller, and he said that upon further research, he added to his position.

How To Invest in Argentina

As you can see from the chart action, the Global X MSCI Argentina ETF (ARGT) has been on a tear this year.

Confidence in Milei has clearly translated to capital flows into the exchange-traded fund, and may be a precursor to anticipation that broad capital flows will come into the country too.

Famously, Argentina has defaulted on its debt many times so it’s a dangerous playground for most investors to enter but Druckenmiller’s thesis that Milei will turn around the country likely has some legs to it yet. It’s unlikely that any rug pull will happen near-term given how recently he was elected.

If correct, that should mean the runway is still long for investors to capitalize on the upswing in the Argentinian economy and the ARGT ETF as a proxy way to play it.

It’s not the cheapest ETF out there with a 0.59% expense ratio but it’s not overly expensive either. Others, such as the Saudi Arabia ETF, are a good bit more expensive.

The bottom line is if you’re looking for a way to gain exposure to Milei’s transformations in Argentina, ARGT may be as good a way to play the investment thesis as any. Ideally, a pullback would offer a more compelling reward to risk ratio, but the good news is Druckenmiller has been riding the wave and did not signal that he was going to sell anytime soon, suggesting materially more upside lies on the horizon.