Brazilian Hedge Funds, Family Offices and Fofs Say Bric Has Been Reduced to Brazil, Expect Surge of New Managers Set Profit From Current Dislocation

span lang="EN-GB">Brazil has enough foreigncovered (see the Roundtable archive:
reserves to pay down all the public foreign debt. This isThe Opalesque Brazil Roundtable can be downloaded
the first time the country is in such a condition. In thehere:http://
last crisis in 1998, China was the only country whichAll other previously published Opalesque Roundtable
had sound fundamentals and they could maneuverScripts can be accessed here:
their monetary policy to keep the country growing,About Opalesque:
despite the fact that all of the economies in the regionIn 2003, with the publication of its daily Alternative
were going down by 10% or 15% in GDP. ManagersMarket Briefing, Opalesque successfully launched an
believe that this time Brazil has exactly the sameinformation revolution in the hedge fund media space:
characteristics."Opalesque changed the world by bringing
Opalesque, the world's largest subscription-basedtransparency where there was opacity and by
publisher covering the alternative investment industry,delivering an accurate professional reporting service." -
has once again united leading hedge fund managersNigel Blanchard, Culross. This hybrid financial news
and investors in its Brazil Roundtable, which took placeservice, which combines proprietary industry news
Oct. 22nd 2008 at the Sao Paolo office of Bulltickstories and filtered third party reports, has been
Brokerage, who also sponsored the event.credited by many industry insiders with delivering
Highlights from the Opalesque Brazil Roundtable -precise, accurate, and vital information to a notoriously
download here:http:// Hedge fund managers forecastguarded audience.
3% or more growth in Brazil - will the money flowEach week, Opalesque publications are read by more
back into the country? Which strategies will benefitthan 500,000 industry professionals in over 100
first?l No systemic risk: banking and corporate sectorcountries. Opalesque is the only daily hedge fund
unleveraged, efficient regulation ensures banks are wellpublisher which is actually read by the elite managers
capitalizedl But: while retail lending is still completelythemselves (
open and set for a 10-15% growth - no bank hasAbout Opalesque Publications:
reduced the credit lines and the amount of moneyAlternative Market Briefing is a daily newsletter on the
available for retail investors - corporations are in aglobal hedge fund industry, highly praised for its
classic liquidity trap with funds being locked in at thecompleteness and timely delivery of the most
bank levell Brazilian family offices and FoFs expect aimportant daily news for professionals dealing with
surge of new managers to set up shop to profit fromhedge funds. Alternative Market Briefing offers both a
current dislocationsl The global hedge fund industry isquick overview and in-depth coverage. Subscribers
now a buyers' market and no longer a sellers' market.can also access the industry’s largest news
What does this mean for managers and investors?larchive (29,000+ articles) on hedge funds and related
The concept of hedge funds as "absolute return"topics.
vehicles or "alpha machines" has been disproved.A SQUARE is the first web publication, globally, that is
What is the future?l A continuation of the liquiditydedicated exclusively to alternative investments. A
discussion (see http://SQUARE's weekly selections feature unique
The following experts participated at the Roundtable:investment opportunities that bear virtually no
1. Luiz Felipe Pinheiro de Andrade, managing director ofcorrelation to the main stream hedge fund strategies
UAMand/or distinguish themselves by virtue of their
2. Mauricio Levi, founding partner of Fama"alternative" motive – for instance, social or
Investimentosbehavioral strategies or those focused on natural
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8. Otávio de Magalhães Coutinho Vieira, Director ofequity indices, fixed Income, currencies, and
Investments at Safdié Private Bankingcommodities. Opalesque Technical Research is unique
9. Antonio Martin, partner at multi-family office GPScompared to most available research which is
Background on the Brazilian hedge fund industry:fundamental in nature and not technically (chart)
Latin America accounts for 8% of the world’soriented.
GDP and 8.5% of the world’s population. TheSovereign Wealth Funds Briefing offers a quick and
majority of Latin American hedge funds are focusedcomplete overview on the actions and issues relating
on Brazilian markets, where most of the assets andto Sovereign Wealth Funds, who rank now amongst
managers are based.the most important and observed participants in the
Latin America is still under-represented within the globalinternational capital markets.
hedge fund industry. With an estimated US$45bn of
assets and 169 hedge fund managers, it representsCommodities Briefing is a free, daily publication
less than 2% of the total universe. However, contrarycovering the global commodities markets. The
to most other hedge fund jurisdictions, Brazil hasOpalesque Commodities Briefings follow the popular
developed a diverse and well regulated onshore hedgeOpalesque “Briefing” format and offer a quick
fund industry.and complete oversight on commodities and
About 75% of the hedge fund assets run by Braziliancommodity-related news and research in 26 detailed
managers are in the multimercado funds, the onshorecategories.
vehicles. According to GFIA, ANBID and Eurekahedge,The daily Real Estate Briefings offer a quick and
87 Brazil based hedge fund firms manage 225complete oversight on real estate, important news
onshore funds with $29,399m of assets. Meanwhile, 43related to that sector as well as commentaries and
Brazil based hedge fund firms manage 68 offshoreresearch in 28 detailed categories. The service can be
funds with $10,187 m of assets (as of end July 2008).subscribed as daily email newsletter or by RSS feed.
Strategy breakdown for all (on and offshore) BrazilThe Opalesque Roundtable Series unites some of the
funds, as of August 2008 in % of assets:l Macroleading hedge fund managers and their investors from
multistrategy: 50.4%l Long-short equities: 23.0%lspecific global hedge fund centers, sharing unique
Event-driven: 14.7%l Fixed income: 9.5%l Relative value:insights on the specific idiosyncrasies and
1.7%l Others: 0.7%developments as well as issues and advantages of
Transparency and Regulation:their jurisdiction. Matthias Knab, Director of Opalesque
Brazil's hedge industry was really started by the mutualLtd, moderates the Opalesque Roundtables. Matthias
funds industry, which means that a very transparentKnab is an internationally recognized expert on hedge
and regulated industry has been created. Many fundsfunds and alternatives.
publish the NAV on a daily basis.Through the series, hedge fund investors looking for
The purpose of the Opalesque Roundtable Series is tonew talent, a hedge fund interested in diversifying its
provide a catalogue of intelligence on the world's mostinvestor base, or service providers looking for new
important hedge fund centres and introduce some ofclients will all get to know some of the leaders in each
the relevant local players of each jurisdiction. Newhedge fund center and will find invaluable information
York, London, Geneva, Stockholm, Moscow, Singapore,and intelligence without any travel involved.
Hong Kong, Tokyo, Sydney, and Auckland are already