Despite the corruption scandals that continued to plague Brazil last year, its stock market produced returns of over 20% in 2017.

Its economy also got some good news as it finally emerged from its worst recession ever, with Brazil’s GDP growing 0.2% in Q2, the second consecutive quarter it posted positive growth figures.

While this is a minute amount compared to some of its emerging market rivals, it is hugely important when you consider that Brazil has been in deep recession for over two years and these latest results could mark the beginning of a new market dynamic.

There is no doubting that the past year has been a roller-coaster ride for fund managers investing in Brazil, with President Michel Temer now involved in the ongoing corruption investigations marring its political and corporate elite.

However, despite these upsets the Brazilian stock market has proved a successful investing ground for local specialists. Between November 2016 and November 2017, of the 201 managers tracked by Citywire with at least a one year track record, 142 managed to outperform the MSCI Brazil’s 20% performance over that 12 month period.

Most of these vehicle are hedge funds and are not for the faint-hearted, with even the top performers hit with by huge losses of over 20% in a matter of days following Temer’s corruption allegations. However, they managed to recover and have greatly outperformed the market since then.

Below is the ranking of the three best performing fund managers over that period.

3. Henrique Bredda – Alaska Asset Management

  • Fund: Alaska Black FIC FIA BDR Nivel 1
  • 12-month return: 72.3%

Fund manager Henrique Bredda currently holds a Citywire AAA rating and is the founding partner of boutique Brazilian shop Alaska Asset Management.

Bredda has been running his Brazilian equity Alaska Black fund since 2011. He adopts a value-oriented, bottom-up approach with a macro strategy overlay to find the best opportunities in Brazil’s market.

Within his fund he favors small-to-mid cap firms, with 86% of the fund focused on companies between R$1 billion and R$50 billion ($300 million to $15 billion).

2. Camilo Marcantonio – Charles River

  • Fund: Charles FIA
  • 12-month return: 88.2%

Citywire AA-rated Camilo Marcantonio runs the Brazilian equity fund for Charles River. He’s been with the firm since 2012 and one the group’s philosophies is for their partners and portfolio managers to have skin in the game, with all of them having a significant portion of their own assets invested in their funds.

Marcantonio follows a value investing approach to produce medium to long-term returns. He looks for companies that are leaders within segments with strong barriers for entry for newcomers and a perspective for solid future results.

The fund may also invest in low liquidity and derivative transactions, involving contracts referenced in shares and stock indexes.

1. Antonio Flavio Clemente and João Paulo Gomes dos Reis – Venture Investments

  • Fund: Venture Value FIA
  • 12-month return: 103.1%

Topping the ranking and achieving the impressive task of hitting triple digit returns in the space of 12 months is the Brazilian Citywire AAA-rated duo of Antonio Flavio Clemente and João Paulo Gomes dos Reis.

Clemente is the founding partner of the small boutique and him and Gomes does Reis have been running the fund since its launch in 2010.

They follow a value investing approach and their largest allocation is towards the capital good sector at 29.6%, as of December 2017. Their next largest allocation is the aviation industry at 22.6%, followed by transport materials at 14%.