Brazilian Funds Miss Out on Recent Market Rally Amid Election Uncertainty

Wednesday, Feb 4, 2026 1:25 pm ET1min read
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Major Brazilian funds missed out on the recent stock market rally due to election uncertainty. Despite the Ibovespa rising 13% in January, most funds saw returns below 10%, with only Kapitalo and ARX coming close to the index gains. Foreign investors bought over R$ 26.3 billion in Brazilian stocks in January, surpassing the total for all of last year. The rally was led by commodity companies, such as Vale and Petrobras.

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