Hedge funds are piling into investments in a most unlikely locale: Argentina.

Argentine stocks and bonds are on a roll less than a year after the nation, which some economists estimate to be Latin America’s fourth-largest economy, defaulted on its debt amid a legal clash with investment firms including Paul Singer’s $25 billion hedge fund, Elliott Management Corp. The gains are the latest sign of how investors are searching the world for opportunities amid superlow interest rates and uneven growth in developed markets.

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