Hedge Fund Industry Booms in Brazil as Investors Take More Risk
- Net inflows topped $30 billion in 2017 as interest rates fell
- This year’s prospects seen as positive, depending on election
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The hedge fund industry in Brazil had its best year ever in 2017, with falling interest rates and investor confidence spurring expectations the trend will continue.
Brazilian “multi-market funds,” similar to global hedge funds, posted net inflows of 97 billion reais ($30 billion) last year -- almost five times the 2016 total and the most for any type of fund, according to Anbima, Brazil’s capital-markets association. The entire fund industry’s inflows more than doubled to a record 263.8 billion reais as investors shifted from bonds in search of higher yields, Anbima data show.