The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Brazil leads the hedge fund field

While one country goes from strength to strength, the rest of Latin America is seeing very slow growth in funds. Helen Avery looks at the opportunities available to managers in the region.

Of THE 148 hedge funds based in Latin America, only nine are outside Brazil, according to figures from Eurekahedge. Over the past two years, the hedge-fund market in Brazil has become increasingly mature. Multi-mercado funds, which are essentially mutual funds for domestic retail investors that can invest in several asset classes, and predominantly run a Brazil-only macro strategy, number more than 4,000. Onshore hedge funds that have structures similar to those in the US and Europe for high-net-worth clients and institutions number 139, up more than 30% on two years ago.

Peter Douglas, founder of hedge fund consulting firm GFIA in Singapore, runs the first fund of hedge funds to go into Latin America, which launched in 2005. He holds the market in high regard. "Brazil is by far the most sophisticated domestic hedge fund market in the world. It is well-regulated and transparent," he says. Douglas says his firm’s Latin American fund of hedge funds has outperformed the global fund of hedge funds sector by a couple of percentage points. According to Eurekahedge, Brazilian onshore funds are outperforming the Latin America hedge fund index and the global hedge fund index this year (see chart).

For outsiders, it is easy to assume that managers have been performing simply by riding the Brazilian wave.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree