Brazil Hedge Funds See Biggest Outflows Since 2017 as Rates Rise

Brazil’s hedge fund industry is being tested as one of the world’s most hawkish central banks quickly increases rates, prompting investors to pile back into fixed-income products.

Investors pulled 13.4 billion reais ($2.4 billion) out of local hedge funds -- so-called multimercados -- in September, the most since December 2017, according to Anbima, the nation’s capital-markets association. That tops the monthly outflow seen in the aftermath of the rout sparked by the pandemic in 2020...