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Brazil hedge fund Verde sees aggressive rate cut in January
January 6, 2017 / 6:54 PM / a year ago

Brazil hedge fund Verde sees aggressive rate cut in January

SAO PAULO, Jan 6 (Reuters) - 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

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