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Fund Up 21% a Year Since 1997 Buys Brazil Stocks Before Vote

  • Dynamo says investors ‘short-sighted’ over election scenarios
  • Rio firm boosts Natura, Rede D’Or, Eneva holdings amid rout
Stock activity on an electronic board at the Brasil Bolsa Balcao (B3) stock exchange in Sao Paulo, Brazil, on Monday, Nov. 8, 2021. 

Stock activity on an electronic board at the Brasil Bolsa Balcao (B3) stock exchange in Sao Paulo, Brazil, on Monday, Nov. 8, 2021. 

Photographer: Patricia Monteiro/Bloomberg

A Brazilian fund with annualized returns of 21% since 1997 is piling into local stocks after they sank to the lowest in more than a decade, shrugging off concern over a divisive presidential election a month away.

The Cougar fund managed by Rio de Janeiro-based Dynamo Administracao de Recursos Ltda has bought up shares in hospital operator Rede D’Or Sao Luiz SA, power company Eneva SA and fuel distributor Vibra Energia SA this year after they fell in price.