Brazilian Hedge Funds Are Betting Big on Stocks
- Verde Asset, Bahia Asset increased positions in local equities
- Brazil’s Ibovespa index is up 14% in U.S. dollars this year
Photographer: Paulo Fridman/Bloomberg
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Brazil’s top hedge fund managers are increasing bets that the stock market will be the best place to profit from the government’s expanding reform agenda.
Firms including Verde Asset Management, which has almost 40 billion reais ($10.1 billion) under management, and Bahia Asset Management increased their holdings of local equities after the pension system overhaul cleared its biggest hurdle in the lower house last month. BlueLine Asset Management, which recently launched its first fund, is favoring Brazilian shares over all other asset classes in Latin America.