Assets are surging and good performance is attracting brave U.S. and European investors
By Barry Cohen
Think of San Paulo or Rio de Janeiro and you would be forgiven if hedge funds did not flash into your mind. Beaches, yes. Soccer, certainly. But hedge funds? Surely not. Well, a small band of investors, like the early Portuguese explorers who discovered the hidden riches of this vast country, are starting to believe that the Latin American hedge fund boom, led by Brazil, is worth checking out.
From a low base of only $1 billion of hedge fund assets two years ago, Brazilian managers now run about $8 billion in onshore and offshore hedge funds. Furthermore, the growth shows signs of accelerating with...