Is a more sophisticated hedge fund industry in Brazil better positioned to weather the wave of volatility?
By Eric Baum
The U.S. credit crunch finally spilled over to Latin America last month, putting an end - at least temporarily - to Brazil's five-year bull run. In the first 16 days of August, as investors pulled out and liquidity evaporated, the Bovespa Index fell 9.17% while emerging market currencies and bonds got pummeled. Some of Brazil's biggest hedge funds also lost ground, including the long/short Mauá Brasil Equities Fund, which dropped 8.89%