Promeritum Investment Management, a hedge fund with a consistent track record of gains, is optimistic about a potential rally in distressed emerging-market sovereign debts, attributing its 16% profit in the previous year to strategic investments in countries like Sri Lanka, Tunisia, and Nigeria. The fund anticipates continued success, focusing on the completion of debt restructurings in nations such as Sri Lanka, Ghana, and Zambia, which may trigger a bond rally. Additionally, it sees potential in local debts from regions like South Africa and central and eastern Europe, propelled by the global trend of declining inflation.