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Alternative Market Briefing

Brazilian equities firm Guepardo launches offshore version of fund with decade long track record of +41.9% (annualized)

Wednesday, December 01, 2010

From Kirsten Bischoff, Opalesque New York:

As emerging markets continue to gain traction with investors (EM hedge funds pulled in $2.2bn in October, according to TrimTabs/BarclayHedge), one country has taken the lead with investors. That is Brazil, which 36% of surveyed hedge fund managers polled by the research firm “strongly favor” over and above other BRIC countries for its attractive investment opportunities.

Further bolstering investor sentiment for the country is the surge in assets being funneled to Brazil ETFs. These vehicles have taken in $886m in 2010 (also according to TrimTabs/BarclayHedge) and have become one of the top two most popular overseas countries for ETF assets (the other being India). This is perhaps more remarkable as Brazil ETF performance has lagged at 1.1%.

“Brazil is not just an emerging market, it is an emerging superpower,” says Alex Bradford, Director and member of the investment committee at Sao Paulo based fund firm Guepardo Investimentos. The $200m+ firm has just recently announced the launch of an offshore version of its value-oriented, long-only hedge fund and Bradford spoke to Opalesque about what is drawing investors to Brazil, and how Guepardo approaches Brazilian equity investing.

There are multiple factors outside of the country’s recent economic growth that Bradford says have driven the favorable consideration by investors. Amongst these factors are: th......................

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