Top US hedge funds eye investors in Brazil

Two of North America's premier hedge funds are heading south early next month for a little wining and dining, and maybe more. Paulson & Co and SAC Capital Advisors, long sought out by wealthy clients in the exclusive $2 trillion hedge fund industry, are both sending executives to the Hedge Fund Brazil Forum in Rio de Janeiro on March 6th and 7th, industry sources and the conference organiser said.
With about $24 billion in assets, Paulson & Co ranks among the world's very biggest hedge funds, while SAC, with $14 billion, has long been admired for delivering some of the industry's steadiest and strongest returns over decades. Seeing them attend conferences like this one underscores how even the most gold-plated names in the business are now having to work harder to raise money from skittish investors who want to be assured of strong returns and no upsetting news. And at the same time, it also shows how Brazil is an extremely attractive investment opportunity, industry experts said.
In the United States SAC and Paulson have been known to attend only a small number of exclusive events and getting a top executive from either organisation, never mind both, to attend is considered a coup among conference organisers. While lodging in Rio's elegant Copacabana Palace hotel, which overlooks one of the world's most famous beaches, would be a draw all by itself, there is clearly more at stake for hedge fund managers this year. "Right now Brazil is very hot," said Anand Raghuraman, a partner at Boston Consulting Group, a leading advisor on business strategy. "Brazil has a good fundamental growth story."
Boasting not only strong growth, relatively low inflation and very attractive investment opportunities in natural resources, Brazil also has a growing number of wealthy investors who might want to place their personal fortunes with these funds. It is also relatively quick and painless to travel from the New York area, where many of the world's top hedge funds are located, to Rio instead of making trips to other emerging market powerhouses such as India or China.