Brazil’s Best-Known Hedge Fund Stumbles to a Rare Annual Loss

Verde’s flagship fell 1.1% after bad bet on domestic stocks
Only the second time since 1997 it has posted yearly losses

Luis Stuhlberger, chief executive officer and chief investment officer at Verde Asset Management SAPhotographer: Patricia Monteiro/Bloomberg

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By Vinicius Andrade

January 5, 2022 at 1:56 PM UTC

This article is for subscribers only.

One of Brazil’s largest and most renowned hedge funds posted an annual loss in 2021, notching only the second yearly decline in its more than 20-year history.

Verde Asset Management’s flagship CSHG Verde FIC FIM fund fell 1.1% last year, dragged down by a poorly timed bet on Brazilian stocks. That marked its worst performance since a 6.4% loss amid the global financial crisis of 2008, according to data compiled by Bloomberg.