They have a return history that Warren Buffett is envious of, they have one of the best teams in the Brazilian market, they have a manager whose teachings are heard internationally, but all this has not been enough to save performance in 2021. The Green fund report , by acclaimed manager Luis Stuhlberger, was released this week and explains why the fund could have its second negative year in a quarter of a century.
The year is not over yet, but the fund has already lost almost 3%. I remember that this year’s loss only takes away part of the shine from the fund that it transformed into R$ 181.5 thousand, R$ 1 thousand invested in 1997.
The performance of the Verde fund is a reflection of the difficulty that the multimarket fund industry has faced in 2021. Like Stuhlberger, the market has been surprised by the rapid changes in the scenario that took place in the year.
In the report, he laments that he believed that “there was already enough bad news in the price” of assets, “and that political agents had reasonable incentives not to breach the spending ceiling.” However, as he explains “this view proved wrong”.
Verde’s losses in the month were concentrated in the stock market, but in the year the losses spread across all markets: fixed income, foreign exchange and equities. Which shows that no asset class in Brazil is unharmed this year.
In a year in which even experienced professionals are struggling, it is even more important to ensure that your portfolio is properly adjusted to your investor profile.
Michael Viriato is an investment advisor and founding partner of Investor’s House
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
