Fraga-backed fund faces 88% drop as leveraged Clarus bet sours


RIO DE JANEIRO: A small equity fund backed by former Brazilian central bank chief Arminio Fraga suffered an 88% rout after leveraged bets in American outdoor sports gear company Clarus Corp went wrong.

The Rio de Janeiro-based asset manager TT Investimentos Ltd, which has two of Fraga’s nephews as founding partners, saw its TT Global Equities FIA IE fund shed about 73 million reais (US$14mil or RM62.9mil) in assets after peaking in March of last year.

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