Hedge Funds

Carnaval - the day after

by

A sharp reversal of Brazil's bull market in stocks - along with fickle investors - tests the strength of South America's biggest hedge fund market.

A sharp reversal of Brazil's bull market in stocks - along with fickle investors - tests the strength of South America's biggest hedge fund market

By John Rumsey

In May May 2006, with Brazil's stock market climbing dizzily and the economy booming on trade in iron ore, petrol and agro products, high-flying macro hedge fund firm Mauá Investimentos of São Paulo made a big push into equities. The move - the launch of an equity-only fund, Mauá Bolsa, and an aggressive macro fund, Mauá Top FI Multimercado - seemed logical, as the fund manager had been rapidly gathering assets on