Itaú Unibanco and Gama Investimentos announced a new partnership to introduce a U.S. small-cap equity fund to the Brazilian market, in collaboration with Portolan Capital Management.
Initially, the fund will be exclusively available to Itaú Private Bank clients, offering access to a unique and complementary investment strategy to the S&P 500.
The Portolan Equity Strategy Selection fund is hedged, protecting Brazilian investors from currency fluctuations. It focuses on companies with market values between $100 million and $3 billion, providing a diversified portfolio of approximately 100 companies. About two-thirds of the investments are directed toward high-conviction positions, while the remainder is allocated to new opportunities and capital recycling.
Bernardo Queima, CEO of Gama Investimentos, highlighted the strategy’s timely launch, given the attractive valuations of companies in the Russell 2000 index. “The current valuation differential is one of the largest in recent decades, comparable to periods like the Nifty Fifty and the dot-com bubble,” he stated.
The Portolan fund has achieved an accumulated return of 32.8% this year, outperforming the Russell 2000 benchmark, which posted a 20.5% gain, the firm added. The portfolio features standout sectors such as healthcare, communication, consumer goods, and technology.
