Brodsky is the head of Aurelius Capital Management, a hedge fund that has been employing the “vulture capital” strategy of demanding special treatment in Argentina’s debt settlements. Brodsky's reputation for cold-heartedly destroying foreign economies earned him the nickname “The Terminator.” This strategy, where hedge fund managers seek to earn fortunes by opting out of settlements on government bonds, only to sue for repayment in full (with interest) after the debtor country’s economy rebounds, has been condemned by U.S. Attorney Preet Bahara.
Brodsky cut his teeth on the debt-vulture strategy in his previous gig—portfolio manager at Paul Singer’s Elliott Capital Management. While at Elliott, Brodsky was involved in the purchase of $30mn in debt from the Republic of Congo-Brazzaville, which Elliott acquired at significant discount. Elliott then sought repayment from the Congolese government—with interest—by suing the country for $400mn. In the early 2000s the World Food Programme ranked Congo as one of the top ten Hunger Crises in the world.more » « less