Brazil’s Top Hedge Funds Are All Avoiding One Thing: Brazil
- Money managers have cut domestic holdings amid political woes
- Investors bracing for volatile 2023, betting oil to advance
A visitor walks past an electronic board displaying stock activity at the B3 stock exchange in Sao Paulo, Brazil.
Photographer: Patricia Monteiro/BloombergThis article is for subscribers only.
Brazil’s best performing hedge funds are kicking off the new year betting on a bit of everything: a rally in crude prices, the impact of China’s reopening on global activity and shorting strategies for another slump in US stocks. The one thing they are avoiding? Their own country.
Funds have been avoiding large Brazilian bets amid fiscal risks and renewed fears of political instability, which were highlighted this week as rioters who refuse to accept the result of presidential elections won by Luiz Inacio Lula da Silva stormed government buildings in the nation’s capital.