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Brazilian Hedge Fund Targets Shares of State-Run Firms

  • Stocks are just at the beginning of a bull run, partner says
  • Firm bought Petrobras, Eletrobras stakes within past year

Brazil has learned its lesson. At least for the next decade.

That’s the bet Squadra Investimentos is making as it scoops up shares of state-controlled companies that its fund managers say will benefit from a shift to market-friendly policies. The rally in Brazilian stocks is just beginning, and gains are set to accelerate after October elections give investors clarity, partner Guilherme Ache said at his office in Rio de Janeiro’s swanky Leblon neighborhood, where he helps oversee 7 billion reais ($2.2 billion) of assets.