May
18
U.S. Hedge Funds Took Profits Out of Brazil in the First Quarter
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Reduced positions in the country’s stocks by $800 million
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Itau Unibanco remains the most popular holding among funds
It looks like a smart move in retrospect.
U.S. hedge funds reduced equity holdings tied to Brazil by about a net total of $800 million from the start of the year to end of March, according to data compiled by Bloomberg. The profit taking came after a 69 percent surge in Brazil’s benchmark stock index last year.
The pullback from Brazil seemed well timed Thursday, as the Ibovespa gauge plunged 16 percent in dollar terms amid a rout in the country’s assets as a political crisis enveloped President Michel Temer and threatened to derail his push to shore up government finances. Oil producer Petroleo Brasileiro SA and lender Banco do Brasil SA plunged as much as 20 percent…
U.S. Hedge Funds Took Profits Out of Brazil in the First Quarter
