The prospect of political change coupled with soaring inflation, which has pushed Argentina's benchmark stock index to a record high, have prompted foreign hedge funds to weigh in on the country's equities market, according to a report by Reuters.

Argentina's S&P MerVal index hit an all-time high in local peso terms last month, and also hit its highest level since 2018 in dollar terms, having more than doubled in value in the first six months of this year. 

With a general election looming large in October, and the prospect of the ruling Peronist alliance being re-elected having been hit hard by a rising cost of living crisis, managers are betting that the country could soon see a change of leadership and perhaps a more market-friendly president, according to Reuters.