Hedge Fund Activity Percolating in Brazil

********  IvyPlus June 15th Fund Business Development Event – http://bit.ly/aToA1J *******

As reported by Reuters’ Gertrude Chavez-Dreyfuss, in 2010, the Brazilian real has slipped in comparison to the U.S. dollar. Fund managers think that investment in the BRIC or EM currencies during the short term as profitable in contrast to the long term, which most fund managers still believe is a profitable investment.  Many fortunes were made using carry trades and the Brazilian real currently has a risk adjusted carry of 45 percent according to Morgan Stanley, which is better than the last five years of 55 percent. On Bloomberg.com, Tal Barak Harif reports that Morgan Stanley opened a Hedge Fund office in Brazil, which will be run by Juan Coppola, to serve South American clients.

Some hedge fund managers are deterred by central bank intervention that stem currency gains and as David Gerstenhaber, the president of macro hedge fund Argonaut Capital Management, said “Brazil, for one, isn’t particularly cheap at the current level.”

Even with these obstacles, most hedge fund managers have the belief that growth in Brazil will continue to be strong. Some of the biggest supporters at this time are Pacific Investment Management Co. and Goldman Sachs. Former IvyPlus seminar presenters from the largest allocators have been high on Brazil’s long term capability.  In BusinessWeek, Candice Zachariahs reported that Pacific Investment Management Co. would rather invest in currencies in countries such as Brazil. In a letter to shareholders, Goldman Sachs displayed their support of hedge funds in BRIC countries as an integral part of growth of capital.

More here:
Reuters Article: http://bit.ly/d0YGwJ
Bloomberg article: http://bit.ly/bOKVkQ
BusinessWeek article: http://bit.ly/aSi71U
Goldman Sachs letter: http://bit.ly/bVeBbn
Extra information: http://bit.ly/bRbEHb, http://bit.ly/aVKte0, http://bit.ly/abtxBd, http://bit.ly/ctfInZ
 

********  IvyPlus June 15th Fund Business Development Event – http://bit.ly/aToA1J *******

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