Ray Dalio is not only the head of the biggest hedge fund in the world, Bridgewater Associates, he is also the most successful hedge fund manager in history. Dalio has made more than $30 billion in capitals gains over the span of his career for his investors, topping legendary investor George Soros. The largest buy for Bridgewater Associates in the second quarter of 2012 was the exchanged traded fund Brazil,miShares MSCI Brazil Index (NYSE: EWZ
For small cap investors, there is also an exchange traded fund, the Market Vectors Brazil Small Cap (NYSE: BRF
). There are also many fine Brazilian companies, such as Gol Linhas (NYSE: GOL
), a regional airliner that is up 9.48% for the last month of market action. The price-to-sales ratio for Gol Linhas is just 0.32. For the next year, earnings-per-share growth is expected to soar by 115.70% for Gol Linhas.
Gafisa SA (NYSE: GFA
) is a Brazilian home builder that is up more than 70% for the last month of trading. New management is turning the company around. That is sorely needed as the share price for Gafisa SA is off by almost 60% for the last 52 weeks of market action.
When the Brazilian economy rebounds, which it will, the EWZ and BRF will recover. The rise in the share prices of Gafisa SA and Gol Linhas are certainly signs of the Brazilian economy improving. Home builders and airline stocks are very economically sensitive. For now, investors can buy the EWZ cheaper than Dalios did at an average price of $56 per share.