Top Brazil Hedge Funds Climb in Comeback Month for Local Assets

  • Adam sells part of U.S. stock holdings to fund Brazil increase
  • Still, redemptions were highest in at least four years
Carlos WoelzPhotographer: Rodrigo Capote/Bloomberg
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Brazil’s largest independent hedge funds surfed a rebound in local assets in January amid a surge in foreign inflows.

Funds handily beat their benchmark last month as domestic stocks posted their best month in over a year and the Brazilian real climbed 5%, leading gains among major currencies. Bets on higher U.S. rates also boosted performance, helping fuel a comeback from a year that saw some of the more renowned firms deliver returns that fell short of the CDI benchmark rate used by the industry.