Business Week – JGP SA and Polo Capital Gestao de Fundos Ltda., two of Brazil’s best-performing hedge funds, are paring holdings of homebuilders on concern higher interest rates next year may weaken the industry after shares rose 199 percent.
Marcio Roberto Correia, who helps manage the equivalent of $1.6 billion at JGP, cut real-estate stakes almost 50 percent over the past two months in his JGP Equity FIC FI Multimercado fund. Claudio Andrade, who co-founded Polo and runs a fund that beat 98 percent of its peers this year, says prices have risen enough to reflect growth prospects.
