Foreign investors are becoming increasingly drawn to Brazilian hedge funds, attracted by the industry’s strong performance over the past few years. “This year, there’s been a really stark change in the market environment. Overseas investors were coming to Brazil in 2005 but it was really only in 2006 that they started to allocate money to hedge funds,” says Dara Chapman, relationship manager at Polo Capital in Rio de Janeiro, which has $220 million in offshore assets.
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