New York (HedgeCo.net) – One of the foremost experts on the Brazilian economy and stock market is looking elsewhere for investment opportunities at this time because he thinks it will get worse.In a New York Times article, Brazilian hedge fund manager Luis Stuhlberger stated that “Brazil is going to get much worse before it gets better.” Considering the success Stuhlberger’s Verde fund has had over the years, investors should take his words very seriously.

Stuhlberger established his flagship fund in 1997 and the fund has averaged a return of 29 percent since it was founded and that performance is net of fees. The fund has only had one losing year and that was during the global financial crisis in 2008 when it lost a respectable 6.0 percent.

Stuhlberger and Verde’s success have drawn the attention of major global firms and that led to Credit Suisse buying Stuhlberger’s original firm, HedgingGriffo in 2006 and when his covenant not to compete ran out last year, Credit Suisse bought a minority stake in the his new firm, Verde Asset Management.Stuhlberger’s strategy is somewhat unique as he tries to identify economic trends and then make appropriate allocations ahead of the majority of trends. He uses hedging techniques in order to lower the volatility.

One thing is certain: anyone with investments in Brazil or looking to invest in the country should heed his advice.

Rick Pendergraft
Research Analyst
HedgeCoVest