Lat Am hedge funds face disappointment

Latin America on course for underperformance

Latin American-focused funds have outperformed the hedge fund industry in each of the last 10 years, the exception being 2008 when returns were only slightly worse. With Brazil underperforming this year, the group is on course for its largest underperformance of the industry in more than a decade.

Investors have supported Latin American funds in recent quarters, but have also shown a history of redeeming funds following periods of negative returns. Mos