The Brazilian economy is having a tough year as it faces the fallout of corruption scandals and the possibility of a recession, however three Brazilian-based manager teams are still defying the odds and delivering the goods.
Corruption at the state-run oil company Petrobras, along with a number of defaults of companies like Brazilian commodity trader Ceagro Agricola and high interest rates continue to challenge managers managing funds in the Brazilian equity sector.
Of the 148 managers with a three year track record till the end of May in Brazilian equities, only three manager teams with Brazil-domiciled funds have managed to make positive returns over that period.
These names outshine the best performing Ucits fund on the list, the BTG Pactual Brazil equity fund managed by Citywire AA-- rated Jose Zitelmann which lost 1.29% in the three year period to the end of May 2015.
The average manager in this group lost 33.6% over the same three year period. All returns all calculated in USD.
3. Carlos Eduardo Rocha, Brasil Plural
Three-year total return (June 2012- 31 May 2015): 0.76%
Sitting in third place is Citywire AA-rated Carlos Eduardo Rocha, who manages three Brasil Plural funds and has returned 0.76% across those funds over the past three years.
He started managing his first fund in 2010. The Brasil Plural Long & Short fund was recently launched in October 2014 with an objective to compose a portfolio of companies that have the potential to outperform the interbank overnight rate, CDI. It has a total of $14 million in assets so far.
2. Lucas Bielawski and Bruno Levacov, Atmos Capital
Three year total return (June 2012- 31 May 2015): 8.65%
Coming in second over the three-year analysis period are the Citywire AAA-rated duo Lucas Bielawski and Bruno Levacov, managers of five funds, who returned 8.7% over the same period.
The two founded Atmos Capital in 2009 and their largest fund to date is the Atmos Master FIA with $442 million invested.
1. Luiz Henrique Guerra and Daniel Reichstul, Indie Capital
Three year total return (June 2012- 31 May 2015): 15.7%
Sitting on top of the list are AAA-rated Luiz Henrique Guerra and Daniel Reichstul, who together mange four funds with returns of 15.7% in US dollars.
Their top performing and largest fund is the $113 million Indie Master FIA fund. Its largest holding is in Brazilian bank Itaú Unibanco, which accounts for 12.1% of the fund, followed by a 5% holding in sugar, energy and foods producer Cosan.