Bearish Rate Bets Hand Win to Brazil’s Battered Hedge Funds
- Legacy, Ace, and Kapitalo posted strong advances in September
- Hedge funds beat benchmark for only the third time this year
Pessimism with domestic assets earned Brazilian hedge funds a rare win in September.
Some of Brazil’s main hedge funds such as Legacy Capital and Ace Capital posted their best returns of the year last month, boosted by bets on lower yields abroad and higher local rates. Money managers are doubtful the government’s fiscal framework will be enough to stabilize the public debt over the coming years.