Maua Recovery Gains Traction

Brazilian hedge fund Maua posted improved monthly figures in August, taking a very small, but much needed step towards recovery following a devastating first half. Its Maua Brasil Fund, a macro multi-strategy vehicle, was up 0.47%, above the 0.31% in July, though still below its 1.05% 2007 total return. The Maua Brasil Plus fund, focused on fixed income, rose 0.93%, topping its minus 1.52% 2007 average and the minus 14.46% 2008 average. Its Maua Brasil Equities fund was down 8.23%, better than July’s negative 9.35% and the minus 10.55% returned by the Bovespa in August. “At the margin we are buyers of stocks in Brazil,” say the fund’s managers in a letter to investors. They add that recent declines in share prices have led to a move away from a net negative position in equity. Maua has experienced substantial redemptions in 2008 and saw assets under management at its Maua Brasil fund fall to BRL277m last month from BRL1.3bn in August 2007.