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By Beverly Chandler, Opalesque London:

Singapore-based GFIA, hedge fund and particularly emerging market hedge fund specialists have revisited Brazil, a country that they had dropped from their intensive coverage due to lack of client interest. From 2004 to 2008, the firm were heavily involved in Latin America, advising a fund of Latin hedge funds and keeping an analyst in Sao Paulo.

However the 2008 credit crunch saw a complete change in client interest in the area, so they withdrew to only include coverage of three or four of the larger Latin American funds.

Peter Douglas, GFIA founder, reports that he has undertaken a recent trip to revisit Brazil, partly to examine whether the previous level of coverage was now called for again.

"The most remarkable thing about visiting Brazil after a three-year break, is how little it’s changed" reports Douglas. "Looking at its impressive GDP growth numbers, the strength of its currency, and the rapid development of the consumer class… you’d expect to see a building boom, endless expensive European cars, gentrifying neighbourhoods. You don’t. There are a few new buildings going up on Faria Lima, and some smarter looking boutiques in Leblon, but little else. If anything the traffic is moving more smoothly, and all the cars are still basic little saloons."

Douglas reports that the growth in Brazil is largely outside the main cities of Sao Paulo and Rio de Janeiro. "Apparently the provincial cities do look like building......................

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