We continue our Sohn Brazil Conference coverage – first up in depth from Luis Stuhlberger, Verde Asset Management who runs Brazil’s largest hedge fund. Next will be Bill Ackman and we should have all the notes in the coming days so stay tuned – you can see a summary here.
Luis is still very bearish below is one quote which just shows how much he is worried about the country
Brazil has just underperformed a lot in OMA (some quality of life index or emerging markets organization), i.e. today practically we at the level of Libya, below Yemen. So after the disclosure of the ranking, now evidently was a good point, ie Brazil is improving, Brazil has always been a high beta in history, the high beta of Brazil in history has always been 1.2, we are below it, I think it has a Brazilian reason But that I think there is a reason why in OMA, the biggest players, 53% of that are China, South Korea and Taiwan, what went up in that index was technology, as Brazil has no technology in our stock market, the emerging schools were commodities in the years 80-90 , financials and now technologies. Brazil had its commodity boom, had its boom of financial, with banks and financials in the Brazilian stock market charging there with 40-50% of growth, but does not have a Alibaba, a Macy's, as the Americans, to be able to self-perform.
Again as a reminer below are our informal notes we will have much more in coming days so please stay tuned – please note this is not verbatim especially since the speech was in Portuguese should be obvious not verbatim but although 99% of our readership is excellent and we love them… because of the .9% who are idiots and the far worse .1% are malicious evil legal parasites with no soul we are forced to spend time explaining things like that. Additionally, these notes are for information purposes only.
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