Regional Reports

2017 Key Trends in Latin American hedge funds

November 2017 | Eurekahedge


The Eurekahedge Latin American Hedge Funds Index gained 14.16% as of September 2017 year-to-date, while MSCI EM Latin America IMI Index posted 18.73% over the same period. Latin American hedge funds still outperformed their European and North American counterparts by a sizeable margin and remain attractive to investors in 2017, as indicated by the 2017 year-to-date investor inflows which stand just above the US$6 billion mark, bringing the cumulative AUM to match the previous 2013 year end peak at US$60.3 billion.

Latin American Hedge Funds Infographic November 2017

November 2017 | Eurekahedge


Eurekahedge’s Latin American hedge funds infographic sums up the industry as at November 2017. Find out more about Latin American hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

2017 Key Trends in Latin American Hedge Funds

June 2017 | Eurekahedge


The Eurekahedge Latin American Hedge Fund Index was up 7.10% in April year-to-date underperforming underlying markets as represented by the MSCI Latin American Index which were up 8.03% over the same period. The strength of Latin American hedge fund industry has been well-supported by the recovery of commodity prices during the first four months of the year, with the Ibovespa Index up a modest of 0.65%.

2016 Key Trends in Latin American Hedge Funds

November 2016 | Eurekahedge


The US$54.9 billion Latin American hedge fund industry grew by US$0.6 billion over the past nine months. Though a modest figure, this represents the industry’s first year-to-date asset expansion since 2013. Much of this year’s asset expansion is attributed to positive performance-based figures totalling US$1.4 billion while investors redeemed US$0.8 billion from the industry.

Latin American Hedge Funds Infographic November 2016

November 2016 | Eurekahedge


Eurekahedge’s Latin American hedge funds infographic sums up the industry as at November 2016. Find out more about Latin American hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.

2016 Key Trends in Latin American Hedge Funds

June 2016 | Eurekahedge


The first four months of 2016 saw some renewed investor interest into the Latin American hedge fund space. Total assets for Latin American hedge funds grew US$0.8 billion as of April 2016 year-to-date, roughly twice the level of asset growth seen over the same period last year. The Eurekahedge Latin American Long Short Equities Hedge Fund Index and Eurekahedge Latin American Multi-Strategy Hedge Fund Index were up 11.21% and 8.53% respectively as of April 2016 year-to-date. Investor optimism in the region was evident as major Latin American equity indices rallied at the start of the year. The MSCI Latin America Index was up 15.24% in 2016 year-to-date as resilient oil and commodity prices have helped in pushing up the valuations of underlying assets.

Latin American Hedge Funds Infographic June 2016

June 2016 | Eurekahedge


Eurekahedge’s Latin American hedge funds infographic sums up the industry as at June 2016. Find out more about Latin American hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, lifespan of active and obsolete funds, and the best and worst performances of the year.

2015 Overview: Key Trends in Latin American Hedge Funds

November 2015 | Eurekahedge


Latin American hedge funds have been experiencing dwindling interest from investors over the last few years as they cope with redemption pressure and stagnating performance-based gains compared to other regional mandates. The global economic slump throughout 2015 has not spared the Latin American economies - commodity-dependent countries in the region were affected by the slowing growth of export destination countries such as China and the US. The fall in commodity and oil prices and the weakening of the real and peso are also affecting the ability of companies to fulfil their debt obligations, while political instability continues to affect the region. Meanwhile, depending on the Fed’s interest rate hike timing, capital outflows from the Latin American region could put them in a worse shape than before.

2015 Key Trends in Latin American Hedge Funds

June 2015 | Eurekahedge


Latin American hedge funds have been facing dwindling interest from investors over the past few years as they cope with redemption pressure and stagnating performance-based gains compared to other regional mandates. Despite challenges in the Latin American hedge funds space, managers have reported gains of 2.32% in 2014, outperforming the MSCI Latin America Index which was down 4.21% last year amid a difficult market environment.

2014 Key Trends in Latin American Hedge Funds

November 2014 | Eurekahedge


The Latin American hedge fund industry has continued to provide remarkable performance growth and diversification for hedge fund investors over the years, with the Eurekahedge Latin America Hedge Fund Index gaining 612.00% since its inception in December 1999, comfortably outperforming the MSCI Latin America Index in the past two years. 2013 in particular was a banner year for Latin American hedge funds which returned 1.73% while the benchmark index plummeted 7.93%. The total assets under management (AUM) of the industry currently stand at US$59.1 billion, managed by a total of 397 hedge funds.

Shariah Compliant Funds Seek a Safe Haven in Brazil’s Free Trade Zones

August 2014 | Alexandre Ferreira Lopes, Maalouf Ashford & Talbot


With expansion plans charted beyond core market horizons in the Middle East and Malaysia, Islamic finance is setting its sights on finding a safe haven to dock in southern waters. Banco do Brasil, Latin America’s biggest bank by assets, is ready to welcome these explorers with the launch of Brazil’s first Shariah compliant equity fund. Alexandre Ferreira Lopes guides us through these new waters.

2014 Key Trends in Latin American Hedge Funds

June 2014 | Eurekahedge


The Latin American hedge fund industry has continued to provide remarkable performance and growth for hedge fund investors over the years with the Eurekahedge Latin America Hedge Fund Index up 14.5% on an annualised basis since December 1999 and total assets under management (AUM) of the industry currently standing at US$60.8 billion. Since the start of the new millennium the Latin American hedge fund industry has witnessed tremendous growth, both in terms of number of funds and AUM.

Brazil and Recent Developments in Islamic Finance Initiatives

June 2014 | Alvaro Taiar Jr and Felipe A Bitar


Brazil already boasts a good level of trade flow with Islamic countries. Trade flow growth over the last 10 years has been above 400%. A good example of this is the export of Halal certified chicken. According to the Brazilian Aviculture Union (Ubabef), Brazil exported 1.48 billion tons of chicken to Middle Eastern countries in 2013. The good results are the consequence of a partnership in which the Brazilian market respects and complies with the requirements of the Islamic market.

2013 Overview: Key Trends in Latin American Hedge Funds

December 2013 | Eurekahedge


The Latin American hedge fund industry has continued to provide remarkable performance and growth for hedge fund investors over the years with the Eurekahedge Latin America Hedge Fund Index up 15.0% on an annualised basis since December 1999 and the total assets under management (AUM) of the industry currently standing at US$61.3 billion.

Brazil: Gateway to the Halal Market?

December 2013 | Rebecca Simmonds


Brazil is a predominantly Catholic country, but has carved a niche for itself in the Halal market. One of the largest suppliers of Halal goods to the GCC and the most promising opportunity for Islamic finance in Latin America, Rebecca Simmonds investigates Brazil’s promising future.

2013 Key Trends in Latin American Hedge Funds

May 2013 | Eurekahedge


Since the start of the new millennium the Latin American hedge fund industry has witnessed tremendous growth, both in terms of number of funds and assets under management (AUM). During this time the total number of funds in the industry has increased from just over 100 to nearly 500 – an increase of 500% in the fund population, while AUM has witnessed even more impressive growth. As at end-2000 total AUM in Latin American hedge funds stood at US$2.6 billion, while this figure stands at US$62.3 billion as at end-March 2013.

2012 Key Trends in Latin American Hedge Funds

December 2012 | Eurekahedge


The Latin American hedge fund industry has continued to provide remarkable performance and growth for hedge fund investors over the years and the Eurekahedge Latin American Hedge Fund Index has delivered impressive annualised returns of 15.62% since December 1999. Since the financial crisis of 2008, the industry has also posted a remarkable recovery in terms of assets and the total number of funds in the region.

2012 Key Trends in Latin American Hedge Funds

May 2012 | Eurekahedge


Amid an environment of increasing uncertainty in the markets, the Latin American hedge fund space has provided investors with continued growth and consistent performance. Since its inception in December 1999 the Eurekahedge Latin American Hedge Fund Index has gained 538.22%. The sector has also witnessed tremendous expansion in terms of fund population and assets under management (AUM). Over the last 12 years the number of managers increased from just over a hundred in 2000 to 480 as at end-March 2012, while AUM increased from US$2.7 billion to US$58.9 billion in the same time period.

Beyond Borders

May 2012 | Pattman and Philip Millward, Walkers Global


With mounting competition on the ground, Brazil-based fund managers are increasingly looking to attract international investors, giving rise to the rapid growth of the offshore Latin American asset base.

Portfolios, Risk and Inflation: Challenges for Latin American Investors

December 2011 | Peter Weiner, State Street Global Markets


Years of financial discipline, sound macroeconomic policies and an Asia-led commodity boom have given key Latin American countries several years of robust economic growth expanding local investment funds. To guard against concentrated local risk and global market contagion, Latin American institutional investors are developing event-sensitive portfolios that seek to diversify risk and mitigate market turbulence.

2011 Key Trends in Latin American Hedge Funds

September 2011 | Eurekahedge


The Latin American hedge fund space has seen remarkable growth over the past decade. As of July 2011, the number of funds was nearly four times that as of end-2000, while assets over the same period recorded an increase over 23-fold. There are currently 442 operational hedge funds, managing over US$64 billion in assets.

Overview of 2010 Key Trends in Latin American Hedge Funds

March 2011 | Eurekahedge


The Latin American hedge fund sector is one of the fast growing segments of the global hedge fund industry. Over the last decade, the total number of hedge funds in the region has increased four-fold while the assets under management has grown by nearly 25 times. Currently, the size of the Latin American hedge fund industry stands at US$60 billion.

MILA: A New Phase of Integration in Latin America

March 2011 | Alternative Latin Investor


Strong growth in Latin America is catching the eye of many business and investors. But when it comes to decision time, Brazil is often the only financial market big and sophisticated enough to make a trade worthwhile. However, three of Latin America's smaller but most dynamic economies plan to combine forces to offer a viable alternative and open up their markets to local and international investors.

Overview of 2010 Key Trends in Latin American Hedge Funds

October 2010 | Eurekahedge


2010 has seen the Latin American hedge fund industry emerge as one of the most dynamic sectors in the global hedge fund space. While performance and growth in most other hedge fund regions remained slow or registered marginal declines, Latin American hedge funds continued to provide consistent returns to their investors. The average Latin American manager has seen only two instances of marginally negative returns in the last 23 months. Figure 1a tracks the industry assets since January 2009.

The Spectrum of Investors for Latin American Hedge Funds

October 2010 | Ron Suber, John Quartararo, Patrick McCurdy and Victor Hugo Rodriguez, Merlin Securities


In the past several years, Latin American hedge fund managers have increasingly entered the competitive global race to win investment mandates. By and large, they have been successful.

2010 Key Trends in Latin American Hedge Funds

April 2010 | Eurekahedge


The Latin American hedge fund industry has seen tremendous growth in the last decade both in terms of performance and assets under management. Since its inception in December 1999, the Eurekahedge Latin American Hedge Fund Index has gained 422.8% while the number of Latin American hedge funds has also increased four-fold over this period. The growth in assets under management picked up incrementally after 2003, registering a three-fold increase from 2004 to 2007.

2009 Key Trends in Latin American Hedge Funds

November 2009 | Eurekahedge


After experiencing some challenging times in 2008 and 1Q2009, Latin American hedge funds1 have rebounded remarkably in the second and third quarters of 2009, bringing the size of the industry above the December 2008 level of US$42 billion. Based on the data in Eurekahedge Latin American Hedge Fund database, we estimate the size of the hedge fund industry in Latin America to be US$51 billion, with 417 hedge funds currently investing in the region. Latin American managers posted healthy returns of 2.46% in September, bringing their YTD performance to a strong 21.1% while also attracting capital, resulting in net positive asset flows of US$4.1 billion.

The Local Edge: How LatAm Funds Can Compete

October 2009 | Eurekahedge


In the real estate world, the mantra is “position, position, position”. The same may be said for hedge funds based in Latin America. Proximity to the real action gives local managers an advantage over funds managed at a distance. We would not have said this in the mid-1990s when Latin America was an intense focus of investor interest in major financial centres and there was a proliferation of emerging markets mutual funds. It was perceived that the best perspective was achieved from a distance (on high?) looking towards the region from the northern hemisphere where one could observe matters without all the baggage that local investors and naysayers brought to the process.

Overview of 2008 Key Trends in Latin American Hedge Funds

May 2009 | Eurekahedge


The Latin American hedge fund space has seen exponential growth over the past decade, with the number of funds and assets therein having recorded an almost four-fold and a remarkable 23-fold increase respectively, between end-2000 and end-2007. The Eurekahedge Latin American Hedge Fund Index recorded impressive returns of 20.6% (annualised) during the period. However, the industry shrank over 25% in terms of assets during 2008, against the backdrop of slowing global economic growth, weakening credit markets, diminishing risk appetites and record-high redemptions out of hedge funds (US$12 billion from Latin America and US$219 billion globally).

2008 Key Trends in Latin American Hedge Funds

November 2008 | Eurekahedge


The Latin American hedge fund space has seen remarkable growth over the past decade. The number of funds as at September 2008 was nearly four times that as of end-2000, while assets over the same period recorded an over 21-fold increase. Based on the data of 462 funds1 in the Eurekahedge Latin American database, we estimate there are currently 403 operational hedge funds, managing about US$52 billion in assets, across the region’s hedge fund industry as at September 2008. The figure below gives a snapshot of the industry growth over the past decade.

Key Trends in Latin American Hedge Funds

February 2008 | Eurekahedge


The hedge fund industry in 2007 in Latin America continued on its course of impressive growth over the last few years, in an environment of favourable economic conditions and markets that were increasingly resilient to turbulence in the global economy. Industry assets nearly doubled in the last two years alone and it also turned in some of the best gains among hedge funds globally (the Eurekahedge Latin American Hedge Fund Index has bested all regional Eurekahedge performance indices in terms of annualised returns over the last seven years at 20.4%).

November 2007 Hedge Fund Performance Commentary

December 2007 | Eurekahedge


fter two consecutive positive months amid rising risk appetites and rallying markets, hedge funds across the board gave back some of these gains in November, with the composite Eurekahedge Hedge Fund Index down 1.6%. A key factor in this market turn was re-emerging concerns over problems in the US housing and subprime markets, as it became apparent that the losses suffered by some of the large global financial firms were far greater than expected. This led to large-scale risk aversion among market participants.

Key Trends in Latin American Hedge Funds

December 2006 | Rajeev Baddepudi, Eurekahedge


The hedge fund industry in Latin America has witnessed tremendous growth over the last few years in an environment of favourable economic conditions and markets that are increasingly resilient to turbulence in the global economy; industry assets grew at a compounded annual rate of 50% in the last two years alone, while turning in some of the best returns among hedge funds globally (the Eurekahedge Latin American Hedge Fund Index has almost tripled in value since the turn of the century).

Markets Boom but Will Elections and Gas Field Moves Hit the Region's Outlook?

July 2006 | Solomon Teague, Hedge Funds Review


Latin America as a region has profited from commodities’ apparently relentless bull-run. However, managers have noted much of the region stands at the brink of potential transition, as a slew of elections take place during 2006.

Spain Finalises the Regulation of Hedge Funds

June 2006 | Jesús Mardomingo, Jorge Canta Diaz de Guereñu, Cuatrecasas


With the approval of Circular 1/2006 on 3 May by the Spanish regulator, the CNMV, the regulation on hedge funds has been finalised after prior approval of the Regulation on Collective Investment Institutions passed on 4 November 2005 (hereinafter, both the Regulation and the Circular, the “Regulations”). Once this regulation is approved, Spanish management companies would be able to file for the licence to manage hedge funds, which would be the prior step for the first product to be launched.

October 2005 Hedge Fund Performance Commentary

December 2005 | Rajeev Baddepudi, Eurekahedge


October turned out to be a poor month for hedge funds across the board. In a marked departure from the positive to spectacular returns seen in the last five months, almost all the Eurekahedge regional indices took a southward turn. The exceptions were Japanese hedge funds (the Eurekahedge Japan Hedge Fund Index was up an impressive 1.7% for the month), and to a much lesser degree, onshore Latin American hedge funds (whose corresponding index was up 0.6% during the same period). The North American and European indices, on the other hand, registered negative returns of 1.3% and 1.8% respectively.

Key Trends in Latin American Hedge Funds

October 2005 | Eurekahedge


The size of the Latin American hedge fund market (including both onshore and offshore funds) is around US$24 billion, representing approximately 2% of the global hedge fund industry. There are close to 200 hedge funds with a Latin American mandate, which saw an annualised growth rate of assets close to 60% since 1991.

Latin America Wakes Up to the Equity Culture

August 2005 | Enio Shinohara, GFIA Pte Ltd


In contrast to how hedge funds evolved elsewhere, and in particularly in Asia, in Latin America the dominance of fixed income and debt markets explains the creation of many macro and multi-strategy funds, in detriment of other strategies, including equity long/short.

Hedge Fund Interview with Florian Bartunek and Eduardo Munemori of Constellation Asset Management

December 2004 | Eurekahedge


Constellation Asset Management manages the Constellation Fund, an equity long/short fund that invests primarily in Latin America. The fund trades the following strategies: relative value, pair trading, merger arbitrage, capital structure arbitrage and convertible bond arbitrage. The fund does not invest heavily in the fixed income markets. The founding partners and co-portfolio managers, Florian Bartunek and Eduardo Munemori, are based in Sao Paulo, Brazil.

Key Trends in Latin American Hedge Funds

October 2004 | Eurekahedge


The number of new funds jumped over the past four years for two reasons: investment bank closures or mergers in Brazil have forced money managers to set up on their own and the increase of Brazilian onshore assets into alternatives has spurred managers to leave established houses. Success stories like Gavea and JGP have also been an inducement. From the chart below, the number of new funds reached 37 in 2003 and we expect that number to be between 35 and 40 for 2004. We gather that the total hedge fund universe, both offshore and onshore, to be around 220 funds.

Latin American Hedge Funds

August 2004 | Enio Shinohara, GFIA Pte Ltd


The objective of this article is to provide a general assessment of the new but rapidly-growing hedge fund industry in Latin America, identifying the key growth drivers from both supply and demand sides. We briefly examine the market environment and how the industry has evolved in recent years. Also, this article aims to give an overview of the industry including strategies, location, size, organisation/people, specific characteristics of the local industry, and some thoughts on possible future developments.