Brazilian Banks Recruit Hedge Fund Talent Amid High Interest Rate Environment

Brazil Banks Poach Hedge-Fund Stars as Industry Boom Goes Bust

Arminio Fraga, one of Brazil’s most-famous hedge-fund investors, spread the word earlier this month that he was turning his funds over to the country’s fourth-biggest bank. Brazil’s double-digit interest rates simply generate too high a return nowadays to lure enough clients to keep a fund like his open any longer, he conceded.

By Leda Alvim, Felipe Saturnino, Raphael Almeida and Cristiane Lucchesi