Hedge Funds Score Big in Brazil Bet Abandoned by French Grocer
- Via Varejo shares surge in weeks since Casino sold its stake
- ‘Easy money’ is gone as more gains hinge on turnaround plan
A man crosses the street with a new TV on his shoulder in Sao Paulo, Brazil.
Photographer: Warley Kenji/picture alliance via Getty Images
French grocer Casino Guichard-Perrachon SA spent the past decade trying to find success with its wager on Brazil electronics retailer Via Varejo SA. Now that it’s finally given up, investors who stepped in to pick up the pieces are raking in a big payoff.
Shares of the retailer have surged 40% since June 14, when a group of hedge funds partnered with retail mogul Michael Klein to buy at auction the 36% stake owned by Casino’s Brazilian subsidiary, Cia Brasileira de Distribuicao, known as GPA. It’s the best-performing Brazilian stock for the period, as markets cheered new management put in place after the ownership change.