Institutional Asset Managers Liquidate Exposure to Brazil ETFs


Dec. 4 2020, Updated 10:52 a.m. ET

Institutional investors lower their holdings in EWZ

The 13F filings of major institutional asset managers for the second quarter of 2015 offer a gloomy picture for Brazil.

In 2Q15, the top five institutions liquidated their exposure to the iShares MSCI Brazil Capped ETF (EWZ). Trade activity among 13F filers displays a 14.02% reduction in the aggregate shares held by institutional investors and hedge funds in the EWZ ETF.

Major institutional holders like DRX Securities, Deutsche Bank (DB), and Moore Capital Management have liquidated all their exposure to EWZ. While Credit Suisse and Bank of America (BAC) have significantly reduced their exposure. This trend may result from slack GDP growth and a tumbling real. GDP forecasts for Brazil are being revised downwards by major banks and the EWZ ETF has collapsed by ~22% in 2015 so far.

Meanwhile, institutions like Goldman Sachs (GS) and JP Morgan Chase (JPM) slightly increased their exposure to EWZ by 0.03% and 0.01%, respectively. EWZ now forms 0.12% of Goldman Sachs’ portfolio and 0.04% of JPM’s portfolio.

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Institutional investors liquidate holdings in BRAF

In 1Q15, the top five institutions have liquidated their exposure to the Global X Brazil Financials (BRAF). Trade activity among 13F filers displays a 99.01% reduction in the aggregate shares held by institutional investors and hedge funds.

Major institutional holders like Bluefin Trading, Susquehanna International Group, Jane Street Group, and UBS AG sold off all their exposure to BRAF.


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