Brazilian hedge funds posted standout performance in April, with Rio de Janeiro-based Vista Capital topping the charts as its flagship Vista Multiestrategia fund delivered a remarkable 37% return – the fund’s strongest monthly gain since inception, according to a report by Bloomberg.

The sharp performance helped drive Bloomberg’s index tracking the Brazilian hedge fund industry to its best month on record since data collection began in 2007. The outperformance was powered by tactical positioning in a volatile global macro environment, as managers capitalised on wide market swings triggered by geopolitical uncertainty and commodity dislocations.

Vista’s gains were led by bearish trades on oil and oil-linked equities, particularly bets against Petrobras. Preferred shares of the state-run energy giant tumbled 19% in April – its worst month since the early days of the pandemic. While Vista has since closed its short position on crude, the fund remains bearish on energy equities, according to a person familiar with the strategy.

Founded in 2014, Vista is known for running high-conviction, high-volatility strategies. Its Multiestrategia fund, which manages around BRL 2 billion ($352 million), has seen both significant drawdowns and explosive upside, including a 13% loss in 2022 after macro positions on oil and rates turned against the fund.

Currently, Vista holds constructive views on Brazilian, Chinese, and Argentine equities, while maintaining a cautious stance on US markets.

Other Brazilian hedge funds also delivered strong results amid market turbulence.

Ibiuna Investimentos, led by ex-central bank officials Rodrigo Azevedo and Mario Toros, reported its best month since late 2023. The firm’s Ibiuna Hedge STH fund gained 3.5% net of fees, supported by rate positioning across emerging markets.

Ace Capital meanwhile, returned 3.1% in its strongest monthly result since its 2019 inception, with the firm attributing the performance to trades benefiting from US dollar weakness and falling interest rates in key EM markets, including Brazil.

“We’re focusing more on tactical, short-term trades — with smaller positions in the face of high volatility,” Ace noted in a client letter.