SAO PAULO Jan 6 Verde Asset Management SA,
Brazil's largest hedge fund, sees "good chances" that the
country's central bank will cut the benchmark overnight lending
rate by an out-of-consensus 75 basis points as early as this
month to revive a sluggish economy.
In a monthly letter to investors, money managers led by Luiz
Stuhlberger said Verde has stepped up positions in fixed-rate
debt on expectations of a bigger rate cut. They also said that
the local currency, which gained 4 percent in December, has
reached "levels of overvaluation not seen in years."
(Reporting by Guillermo Parra-Bernal; Editing by Andrew Hay)