Brazilian hedge funds provide safe haven for domestic investors amid political and macroeconomic uncertainty, says Preqin

Brazilian hedge funds are providing attractive risk-adjusted return for domestic investors, with a 23.38 per cent one-year return, according to research published by Preqin, the global leader in alternative assets data, tools and insights. 

Preqin analysed the data of 349 Brazilian hedge funds it is currently tracking, crowning Verde Asset Management as the top Brazilian hedge fund firm by asset under management (AUM), followed by SPX Capital, Itau Asset Management, Kapitalo Investimentos and Legacy Capital.  

Equity strategies, which make up the bulk of the hedge funds in Brazil with 41.74 per cent, had cumulative returns over three-years of 16.25 per cent and outperformed the Ibovespa benchmark throughout 2020.    

Cameron Joyce, Preqin’s VP Research Insights, commsaysents: “The Brazilian hedge fund industry has grown steadily in recent years. Low interest rates have led to a flood of domestic capital moving into Brazilian hedge funds and the sector has been successful in producing attractive risk adjusted returns.”