Verde Asset Management, Brazil’s largest hedge fund, stepped up purchases of state-controlled oil producer Petróleo Brasileiro SA bonds in October to take advantage of high yields, but warned that the company is not acting with sufficient urgency to cut debt.
In a monthly letter to investors on Monday, money managers led by Luis Stuhlberger said Verde started becoming net-long positioned in bonds of the company known as Petrobras in September as they assessed whether a surge in yields was overdone.
The yield on Petrobras’ 6.25 percent bond due in March 2024 ended last month at 9.75 percent, compared with 8.15 percent on Aug. 30. The yield peaked on Sept. 28, reaching almost 13 percent as slumping oil prices, the biggest debt burden among global oil firms and a corruption scandal drove investors to sell the securities.
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Brazil Energy Insight 
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