(Bloomberg) -- BlueLine Asset Management, a Brazilian hedge fund founded by JPMorgan veterans, is shutting down operations after just five years as the local industry grapples with a wave of redemptions amid tougher market conditions.
The Sao Paulo-based firm, which managed a little over 300 million reais ($50 million) through October according to capital markets association Anbima, will shut down all activities by early next year, BlueLine said in a statement on Tuesday. The liquidation will be determined through a shareholders’ meeting, which will also set up the redemption of the shares.
“This decision was made after a deep reflection on the strategic and cyclical challenges faced by the institution,” the firm said.
BlueLine is the latest independent Brazilian hedge fund manager to shutter amid continued redemptions. Brazilian hedge funds are struggling as clients flock to fixed-income instruments and tax-exempt products amid double-digit interest rates. The industry has seen net outflows of over 324 billion reais this year alone, according to Anbima’s data through November.
BlueLine’s flagship fund was launched in 2019 by Giovani Silva, who traded Latin American markets for 17 years at JPMorgan. The firm also counted with Fabio Akira Hashizume, another JPMorgan veteran, as head of its research department.
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