Elliott Associates, a hedge fund run by Paul Singer, a major supporter of political campaigns, purchased around $20 million of the defaulted Peruvian loans for about $11 million and then sued the country and its central bank for the original amount, plus interest, in a New York court. Elliott won a $58 million settlement and cleared $47 million in profit — a more than 400 percent rate of return on its investment. This windfall profit came at a huge cost to environmental and social programs in Peru.
