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Most Brazil Stock Funds Missed the Rally Right in Their Backyard

  • As Rousseff impeachment nears conclusion, locals ready to buy
  • Local fund purchases may bolster index as foreigners retreat
Bloomberg business news

Markets Seek Clarity on Hopes of Brazil Economy Revival

Brazilian stock funds largely missed out on this year’s world-beating rally and are piling into local equities now, a move that some analysts and investors say will prop up the market just as foreigners retreat.

Fewer than one-fifth of Brazil-based stock funds have outperformed the benchmark Ibovespa gauge’s 35 percent surge this year, the worst ratio since 2009, according to data compiled by Bloomberg. As locals lost out, foreign investors poured in a net 15.7 billion reais ($4.3 billion) this year on optimism the impeachment of President Dilma Rousseff would make way for a new government to rein in a budget deficit and revive the economy.