Hedge Fund Verde Says Victim of Brazil’s ‘Biggest Fraud Ever’

One of Brazil’s best-known hedge fund managers said it was stung by what it called the nation’s biggest case of corporate fraud on record with Americanas SA and joined banks in slamming the firm’s billionaire shareholders.

Luis Stuhlberger, chief executive officer and chief investment officer of Verde Asset Management

Photographer: Patricia Monteiro/Bloomberg

Verde Asset Management, which is run by industry veteran Luis Stuhlberger and whose flagship hedge fund is up over 21,800% after fees since its 1997 inception, says its exposure to local bonds of the Brazilian retailer brought a 14 basis-point loss last month, trimming gains to 2.7% in January.

“We were victims of a fraud,” Verde wrote in an investor note released Monday. ...