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Alternative Market Briefing

Opportunities, macro views and the new LatAm hedge funds

Wednesday, November 28, 2007

Benedicte Gravrand, reports on yesterday’s Jetfin (website) conference on LatAm Hedge funds, Geneva.

“These are fantastic times for Latin America,” says Mr. Singh of the IMF in the Euromoney LatAm Financial markets handbook 2008. “The macroeconomic context is relatively strong, the external conditions still very favourable, and there has been discernible progress in key social and poverty indicators. Policy makers have generally incorporated many lessons from the region’s history – in particular the importance of economic stability as a necessary condition for progress towards those broader imperatives.”

Most territories in Latin America are now part of the rapidly emerging countries club as highly volatile cycles are gradually giving way to economic stability. Brazil is still predominant in the LatAm financial market arena and it was so at the conference.

Brazilian economy: outlook and challenges Luis Carlos Mendonça de Barros, founding partner at Sao Paolo based-Quest Investimentos, argued that Brazil is becoming a real open economy as both domestic consumption of goods and imports are increasing. There are new inflation dynamics, strong consumption and investment - as the minimum wage is at a 40 year high, employment, retail sales and the credit market are up and IPOs are multiplying.

The China phenomenon is very important to Brazil: China’s c......................

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