Sun, Oct 4, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Brazilian investors prefer to invest their money offshore through local managers

Monday, January 06, 2014

Komfie Manalo, Opalesque Asia:

Brazilian hedge fund managers are wary of Corralito-type regulations and have become so sceptical about the future of Brazil that they invest offshore to protect their investments, said George Wachsmann, a partner with GPS Investments, the largest independent wealth manager in Latin America, during the recent Opalesque Brazil Roundtable .

"They (local fund managers) are afraid of a Corralito type regulation here in Brazil, so they want to send money offshore so as not to be cut in the middle," Wachsmann said.

Corralito is the informal name given to the economic measures taken in Argentina at the end of 2001 by Minister of Economy Domingo Cavallo in order to stop a bank run, and which were fully in force for one year. The measures almost completely froze bank accounts and forbade withdrawals from U.S. dollar-denominated accounts.

Wachsmann added that feeder structure would be a smart choice because it would bring money to a master fund locally that he believed will not taxed in Brazil.

He went on to say, "I think that interest from the managers' side in setting up offshore structures exists and is growing, but the more pressing and tangible demand is coming from Brazilian investors who want to invest their money offshore, and not just in funds. In other words, there is not ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  2. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  3. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  4. Vilas’ equity long bias hedge fund generates market-beating results[more]

    Komfie Manalo, Opalesque Asia: The Vilas Fund, an equity long bias fund managed by Chicago, Illinois-based Vilas Capital Management, posted five-year annualized returns, net of fees, of 23.47% vs. 15.87% for the S&P 500 Index, including divid

  5. Performance - Manager admits spin used to hide poor performance, Fortress macro hedge fund slumps 17.2% amid manager shakeup, In the hedge fund world, bigger is still better[more]

    Manager admits spin used to hide poor performance From … Colin McLean, managing director of SVM Asset Management, told FTAdviser that fund managers underperform all the time, so stories are often needed to mask or explain this. “People need to build a good framework