Archipelago Holdings FIC FIA
Fund
Archipelago Holdings FIC FIA is an investment fund regulated by the CVM 409 Instruction.
Objective
The Fund’s objective is to provide high absolute returns in the long term from an investment portfolio concentrated in shares of 10 to 12 publicly traded companies. The portfolio contains only shares of companies in which Archiepalgo Partners (Manager) believes it has an investment perspective based on its sector specialization; the professional experience of its partners; its network of C-level executives, board members and business owners; and its long term philosophy. The decision to focus in a few companies is deliberate. Defining a strict universe not only makes room for focus and depth, but also frees up time to explore different angles, mitigating risks.
Strategy
The Fund’s portfolio contains mainly companies with attractive business models and dominant competitive positions in sectors where, through its professional track record, the Archipelago team has acquired broad experience, business perspective and a high quality relationship network, such as retail, consumer goods, services and specific industrial cases.
The portfolio strategy consists in selecting investment opportunities in companies that the market agents, on aggregate, might not be pricing properly in certain time frames due to: (i) their shorter investment horizon; (ii) their perception of risk as price volatility; (iii) their misinterpretation of quality and risks and (iv) their culture, internal incentives and client base, which may not be aligned with the investment horizon of their funds.
Another strategy of the Fund is to actively manage its exposure to the stock market through the purchase of public bonds (LFTs), purchase/sale of Ibovespa Futures and other strategies that make use of derivatives to protect the portfolio (hedge) to the benefit of shareholders.
The Fund may collaborate actively with the shareholders and executives of the invested companies at board level and may appoint board member positions.
The Invested Fund can invest up to 10% of its net worth in liquid assets traded outside of Brazil.
The Fund does not use Ibovespa or any other equity market index as a parameter or reference for its investment decisions.
Target Clients
Qualified investors that seek high levels of return in the long term through equity investments and that understand the risks involved in the stock and derivative markets.
Fund Information
For information on structures and fees please contact: contact@archipelago.com.br
