Brazilian Hedge Fund Performance
I spent a month working in Sao Paulo last year and found that there are over 300 hedge fund managers based in the city and over 400 within Brazil as a whole. This group of managers controls over $150B in assets and in my experience in meeting with them they are just getting started. Below is an article on hedge funds in Brazil and their recent performance, this is being added to our Hedge Fund Guide to Brazil which is part of our large set of Geographical Hedge Fund Guides.
Brazilian hedge funds that survived the Bovespa stock index’s record tumble last year by loading up on debt are missing out on a 2009 rally.For more information on hedge funds in Brazil please see our Hedge Fund Guide to Brazil.
All four classes of Brazilian hedge funds, known as multimercados, had a weighted return of less than 5 percent through April 28, according to the National Association of Investment Banks, or Anbid. The Bovespa rose 22 percent in the year through April 28 and 35 percent through today.
The Bovespa climbed above 50,000 yesterday for the first time since September on speculation falling interest rates and a rebound in demand for the country’s commodity exports will bolster economic growth. Brazilian hedge funds hold “a lot” of bonds, accounting for as much as 80 percent of their assets in many cases, according to Francisco Meirelles de Andrade, who manages 460 million reais ($215 million) at Nest Investimentos Ltda. in Sao Paulo.
“A lot of multimercados missed the boat,” said Jacopo Valentino, who oversees $2 billion in Latin American stocks at BNP Paribas Asset Management in Sao Paulo. source