Brazilian hedge funds have taken a 10% stake in Argentine stock exchange operator Bolsas y Mercados Argentinos SA, or BYMA, Bloomberg News reported, citing "four people familiar with the matter."
BYMA President Ernesto Allaria reportedly said that about 20% of the operator's stake is in the hands of foreign investors, with Brazilian investors accounting for half of that percentage. A majority of Brazilian ownership in the BYMA is accounted for by eight funds, with their stake reportedly worth $132.2 million, according to two of the sources.
Four directors at BYMA will see their tenures expire in the current year, and replacements will be discussed in an April 5 meeting. Some of the Brazilian hedge funds are looking to appoint a director on the company's board, the sources added.
The Brazilian hedge funds are hoping the BYMA exchange will be profitable, similar to Brazilian exchange B3 S.A. – Brasil Bolsa Balcão — the resulting entity from the merger between BM&FBOVESPA and Cetip SA – Mercados Organizados — which, according to the report, holds market capitalization of 53.5 billion Brazilian reais at present.
Meanwhile, Walter Stoeppelwerth, chief investment officer for Balanz Capital Valores SA, recommended some caution in buying stakes in BYMA. "While I do not think there is any doubt that the stock market will expand in size by several multiples and also in sophistication, we are still a long way from Brazil," the executive reportedly said.
As of March 8, US$1 was equivalent to 3.26 Brazilian reais.
