Brazil’s hedge fund industry was battered by weak performance and redemptions last year. Although overall performance has improved this year, several managers remain weak and are fighting for survival, say experts.

Up to 20 of about 100 hedge fund managers could be forced to close their funds following an exodus of clients. They have seen assets under management drop by up to 85 per cent in the past year to an average of R$75m ($37m, €27m, £23m) and are no longer profitable.