Portfolio management consists in allocating resources in line with two strategies:
I) ALPHA PORTFOLIO, TOP DOWN analysis: selection of sectors for where Long, Neutral and Short positions will be established; BOTTOM UP analysis: selection of the best companies and underlying instruments in each sector. At least 50 of the total short position will be performed via IBOV index (this percentage can be decreased depending on the committee approval). The rest will be made up of short positions, in large/ mid-caps until the desired exposure is achieved.
II) PAIR TRADE, Arbitrage: selection of arbitrage strategies which seek to maximize market asymmetries and distortions between companies, sectors and share classes. Average Gross Exposure, 40% to 60%, Max. 100% - Net Exposure limited between -10% to 20%.