Wall Street closes at a record for the first time since end of January
Investing.com -- Billionaire investor Stanley Druckenmiller's investment firm built a substantial position in Brazilian stocks just before a major market rally in January.
Duquesne Family Office acquired approximately 3.5 million shares of the $9.1 billion iShares MSCI Brazil ETF during the fourth quarter of 2023, according to regulatory filings. The firm also purchased call options on the fund.
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The ETF jumped roghly 17% in January, marking its strongest monthly performance since 2020. A weakening dollar and rising commodity prices fueled the gains, particularly benefiting major stocks like miner Vale SA and oil producer Petroleo Brasileiro SA, which both saw double-digit increases.
The 2024 rally has been concentrated in heavily traded stocks, typically favored by foreign investors. Market sentiment has also been boosted by expectations that interest rate cuts will begin next month in Latin America's largest economy.
This Brazilian market surge comes amid broader strength in emerging markets, which are attracting capital due to improving economic fundamentals and global investors seeking diversification after years of heavy U.S. market exposure.
Druckenmiller, a renowned hedge fund manager who previously worked with George Soros, founded Duquesne Capital in 1981. He voluntarily closed the fund in August 2010 having amassed over $12 billion in assets.