Rebound in South African Bonds Pays Off for Van Eck

Van Eck Associates Corp. started buying South African bonds during the biggest selloff on record, and is now reaping the reward with a return of triple the emerging-market average.

The New York-based firm, which oversees about $225 billion, held no South African bonds at the start of the Iran war. A year-long rally had left them steeply valued and positioning overcrowded, according to David Austerweil, a deputy portfolio manager for emerging-market fixed-income. On March 16, Van Eck began snapping up the debt.