WHG is staffing up its newly created local-equities desk. The firm hired Lucas Rossi as an equity trader after his stint at SPX Capital, and brought in analysts Matheus Videira from BTG Pactual and Phelipe Francesco from Vista Capital. To cap off operations, Daniel Debessa - with experience at Monte Bravo and XP Inc. - is set to serve as chief operating officer.
The expansion follows August moves to recruit Danilo Deutsch and Fernando Sampaio, both previously at Brasil Capital, to run a new strategy focused on Brazilian stocks. Their fund, Polaris, went live in September, lining up just before a rally tied to this month's presidential elections.
Following the Oct. 4 first-round ballot, right-wing candidate Flávio Bolsonaro finished ahead of incumbent Luiz Inácio Lula da Silva, after which assets broadly rose and the Ibovespa hit a record high. In October, the gauge has climbed roughly 10%. Flávio Bolsonaro is widely viewed as the front-runner for the Oct. 25 runoff, and investors anticipate a greater chance of tackling Brazil's ballooning deficit, despite the fact that he has yet to lay out a plan.
"We already had a bullish view ahead of the election because we were seeing a lot of opportunities in the market," Deutsch said in an interview. "Then came the surprise election result, and we added a bit more risk, even after the rally, with the view that this could be the beginning of a better cycle."
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A bigger WHG equities bench plus a just-launched fund meeting a rising market is a useful read on local risk appetite. If Polaris rides the election trade, flows and performance could echo across Brazil-focused exposures in your portfolio.
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