MANAGERMONDAYGÁVEA INVESTIMENTOS

ARMÍNIOFRAGANETO

In the last twelve months, the HFRX Brazil Index was Down 23.35%

But Gávea Investimentos Outperformed Brazilian Hedge Fundsand Brazilian Benchmarks in the Same Time

How? Concentration & Capital Deployment to Winners

Top 8 Positions

Position Sizing & Security Selection

Cumulative Contribution Breakdown

Key Takeaways

1. First, concentration: the most conviction in selected stocks and the moreconcentration, the more your book will maximize the gains of winning bets. 2. Second, position sizing: the better you allocate your assets among thosesecurities that you value the highest, the better the cumulative andcompounded performance of your portfolio. 3. And third, security selection: in any country there are always going to bewinning and losing companies, even in market crises. The ability to correctlyidentify the right securities at the right time, the higher chance your portfoliowill survive in a continued downward environment like Brazil’s.

For More Information, Please Contact:

Stan Altshullerstan@novus.com

Chief Research Officer,Novus