quarterly report · dilma rousseff’s government has lost the ability to disguise its real...

QUARTERLY REPORT4th QUARTER 2015 IP-Brazilian Equities IP-Participaccedilotildees

Virginia de Medeiros ldquoFaacutebula do Olharrdquo 2013 digital photopainting printed on cotton paper framed text audio installation 120x90cm (photopainting) 40x505x5cm (framed text) made in collaboration with the photopainter Mestre Juacutelio Santos exhibition view Galeria Nara Roesler Satildeo Paulo SP Brazil

(work presented at PIPA 2015 Exhibition at MAM-Rio) photo by Everton Ballardin

This document is published exclusively for the purpose of

providing information and conferring transparency to the

management carried out by IP Capital Partners is not the

Offering Memorandums of the IP Global Fund Ltd and IP Fund

SPC (ldquoFundsrdquo) and is not to be considered as an offer for the

sale of Shares of the Funds or of any other security The Funds

are prohibited from making any invitation to the public in The

Cayman Islands to subscribe for any of their Shares Shares

may be subscribed for by exempted or ordinary non-resident

companies or other exempted or non-resident entities

established in The Cayman Islands Shares of the Funds may not

be offered or sold within the United States or to any US Person

The Funds may not be sold redeemed or transferred in Brazil

The offer and sale of Shares of the Funds in certain jurisdictions

may be restricted by law Before subscribing for the Shares each

prospective investor should (i) carefully read and retain the

Offering Memorandums of the Funds and the relevant Annex

in respect of the Class of Shares (ii) consult with hisherits own

counsel and advisors as to all legal tax regulatory financial

and related matters concerning an investment in the Funds

Past performance does not guarantee future results IP Capital

Partners takes no responsibility for the accidental publication of

incorrect information nor for investment decisions taken based

on this material Access to this document or use of the services

or information provided herein is prohibited by any person or

entity in any jurisdiction or country where such distribution or

use would be contrary to local law rule or regulation

INDEX

IP-Brazilian Equities IP-Participaccedilotildees 04

Miscellaneous 09

Performance

IP-Brazilian Equities 11

IP-Participaccedilotildees Class 12

Terms and Conditions 13

Additional Information 14

PIPA 15

4

Quarterly Report | Fourth Quarter 2015

The change in market prices of IP-Brazilian Equitiesrsquo

holdings resulted in a 32 (27 in BRL) variation in

the NAV per share during the fourth quarter of 2015

and -347 (-21 in BRL) for the full year During

the same periods IP-Participaccedilotildeesrsquo NAV per share

changed by 43 (38 in BRL) and -247 (128 in

BRL) respectively Over the past five years IP Brazilian

Equities has accumulated a return of -493 in dollars

(211 in BRL) compared to -282 (715 in BRL) by

IP-Participaccedilotildees and -733 (-363 in BRL) by the

Ibovespa These figures are net of all fees

RemindeRs

Before we begin wersquod like to recap some key points

about IP funds given the political and economic

uncertainty as well as the widespread anxiety

in Brazil

The IP-Participaccedilotildees fund is not solely focused on

Brazilian companies Although it originated as such

in 2008 we began to gradually invest outside of

Brazil The backdrop for this was simple the fund

should mirror what we would like to do with our own

assets And in this spirit geographic restrictions on

our investments were out of the question We would

rather restrict ourselves to good business models

with talented honest and committed executives

Influenced by IP-Globalrsquos pioneering experience since

2001 the process was natural With the maturity that

only comes with time and a good deal of curiosity we

intensified our research and accumulated knowledge

about excellent businesses abroad At the same

time the deterioration of the Brazilian business

environment the creation of Brazilian Depositary

Receipts (BDRs) and the gradual easing of restrictions

on domestic funds investing abroad were additionally

attractive incentives

Currently we only have a limited portion of IP-

Participaccedilotildees invested in Brazilian companies They

are solid profitable and well-priced companies

(Itauacutesa is one of the most relevant) We have a fair

amount of cash in the fund with a significant portion

invested in NTN-Bs (inflation linked bonds similar

to American TIPS) with relatively short maturities to

protect from inflation Outside of Brazil we invest in

great companies at prices we consider attractive The

fund also has a reasonable exposure to the US dollar

which we believe is prudent given the current context

of Brazil

Finally it should be noted that the investment team

managing IP-Participaccedilotildees has worked independently

from the IP-Global team for the past five years The

investment philosophies of both teams follow the

same guidelines but their resulting evaluations and

opinions do not always coincide Thus the content

of the reports as well as the fund investments are of

exclusive responsibility of each team

IP-BRAZILIAN EQUITIES IP-PARTICIPACcedilOtildeES

5

IP-Brazilian Equities IP-Participaccedilotildees

PRoductive FRiction

ldquoThe humility required for good judgment is not self-

doubt ndash the sense that you are untalented unintelligent

or unworthy It is intellectual humility It is a recognition

that reality is profoundly complex that seeing things

clearly is a constant struggle when it can be done at all

and that human judgment must therefore be riddled

with mistakesrdquo ndash Charlie Munger

When looking at IP-Participaccedilotildeesrsquo performance over

the last five years we are content that ndash at least in

local currency terms ndash we have protected our clientsrsquo

assets (and our own) from the serious problems in

Brazil We were often on target but of course we also

made some mistakes

No one enjoys making mistakes but dealing with them

properly is crucial to improve At IP team discussions

are central to our process of preventing diagnosing

and rectifying mistakes This can only be achieved in

an appropriate environment and amidst a culture that

values a clash of ideas

To strengthen this culture and preserve this

environment we pay special attention to three key

points (i) the profound trust between members of the

investment team (ii) the constant search for the truth

and (iii) full transparency

Without trust it is impossible to establish a culture

based on the productive clash of ideas This requires

an environment where even the deepest criticism

should not be taken personally

This quest for truth of which we speak is not

fundamentally philosophical Itrsquos practical and applied

to everyday life In investment theses itrsquos not possible

to reach absolute truths What we have is a spectrum

of probabilities linked to possible outcomes and our

best judgment

The more we discuss research and reflect the more

we can refine these probabilities and identify potential

risks and opportunities Through this process we

come to a better understanding closer to the ldquotruthrdquo

We see these discussions as a means to improve our

results over time A small well-prepared group is able

to bring together different experiences eliminate

certain biases and point out flaws or risks that were

not initially considered

A key issue however is ensuring the proper size of the

group If itrsquos too large the energy spent to synchronize

knowledge and absorb the different points of view

leads to long stressful and inefficient meetings

Wersquove already been through this and certainly will not

repeat the same mistake

Another challenge is to prevent the instinct for

ldquopolitenessrdquo from interfering with the need to

torpedo our own investment theses to arrive at the

valuable survivors

6


This is where the third point comes in there must be

total transparency We must be brutally honest and

express exactly what wersquore thinking Trust us this is

much harder to implement than it seems When we

instituted this ldquorulerdquo our discussions became very

heated With time we learned the proper tone for

disagreement how to depersonalize discussions and

keep the focus entirely on ideas And given human

nature perhaps the hardest part of all to accept that

someone elsersquos argument is better and to change

onersquos mind

Steve Jobs once shared an interesting story One

day an 80-year-old man who lived near his house

called Jobs over to his garage He wanted to show

him a curious object It was a rotating metal drum

connected to a motor by a belt They went out to

the yard collected some coarse ugly stones placed

them inside the barrel and closed the lid The old

man added water and started the engine causing the

drum to rotate He then asked Jobs still a young man

to return the next day When they opened the barrel

inside were beautiful stones The coarse stones

after clashing against each other for some time

creating friction and noise came out as beautiful

polished stones

The analogy is inevitable Persistent people willing to

argue their points of view generate a lot of noise but

also test and refine their ideas In the end we leave

the barrel (in our case a meeting room) with better

hypotheses and conclusions Today our discussions

remain ldquolivelyrdquo but the dynamic is pleasant and

effective There is an order that turns the heat into

productivity At this point we all know each other well

and those who designed this process for the team are

still with IP while new and talented people are being

prepared and are eventually added to the group

PRosPects

Dilma Rousseffrsquos government has lost the ability to

disguise its real intentions It took less than a week

for the new finance minister to state that the country

needs ldquomore State and less marketrdquo It is difficult to

expect anything positive from a government so intent

on harming the economy

In a world of interest rates still close to zero the

market should be invited to compensate for the

collapse of governmentrsquos capacity for investment But

how A pragmatic solution to the fiscal crisis seems

even further away than it was a year ago Government

revenue and the Brazilian economy are in free fall Debt

interest and inflation are at even higher levels Given

his history the new finance minister Nelson Barbosa

would need to be even stricter than his predecessor

to convince markets and entrepreneurs to invest An

unlikely scenario especially given the entangled web

in which politics finds itself Unemployment is rapidly

deteriorating How can difficult and unpopular

reforms be carried out in this environment


7

Without major reforms the de-indexation of the

economy and control over spending it will be difficult

to attract investments in sufficient volume to change

this trajectory Foreigners have not yet given up

hope They still fill investment conferences and dream

of a Brazilian ldquoturning pointrdquo There is also still a

persistent flow of direct investment Until when The

government must not abuse this goodwill or it may

end for good

In a recent interview Nelson Jobim1 said that if politics

is unable to fix the crisis the crisis will fix politics The

question is what level of recession unemployment

and inflation the country will have to endure to finally

resolve its political crisis It seems likely therefore that

in order to improve we must first deteriorate further

We will eventually get past this Our mission is to

survive until Jobimrsquos prophecy materializes and at the

same time not fail to take advantage of opportunities

in Brazilian companies that we admire which in some

cases may come out of the crisis even stronger

The prices for good Brazilian companies are finally

correcting to levels more consistent with reality On

the other hand the risks for many businesses have

also increased

Ultimately crises are good for our fund In the short

term they may be negative but they allow us to

ldquoplant the seedsrdquo for excellent future returns which

more than compensate the initial losses However

given that the current crisis may extend further we

have made it our mantra to ldquoenjoy responsiblyrdquo

Some say that the US market is expensive Following

several years of strong advances there is naturally an

increased vulnerability to crises and external shocks

And when we ponder on what can go wrong with the

world the list is quite extensive On the other hand

our view is that by being very selective and careful

there are great business available at prices that can

provide good returns over the medium term

In our experience exceptional businesses managed by

competent and committed people create value over

time If you can acquire them at sensible valuations

they provide good returns over the mediumlong

term - with or without crises That said an all-in

strategy doesnrsquot make sense We know that sooner or

later the next crisis will come The opportunities that

may arise on such occasions are extraordinary and

usually do not last long Hence another component

of our approach is to carry a healthy dose of cash and

prepare ourselves to take advantage of such moments

of stress

With the usual caveat that we look at larger windows

than a single year to evaluate the results of our

funds the year 2015 left us satisfied Not because

we believe our returns were stellar but because


1 Nelson Jobim served as a judge on the Brazilian Supreme Federal Court from 1997 to 2006 was president of the Supreme Federal Court from 2004 to 2006 and most recently was minister of defense from 2007 to 2011

8


they were obtained even after the decline in prices

of certain assets in Brazil and abroad - which we see

as temporary Put differently today the ldquospringrdquo is

more tightly compressed and the funds have greater

potential returns in the coming years than a year ago

The rapid decline in market prices at the start of the

year only reinforced this perception

Happy 2016


9

MISCELLANEOUS

ldquoThe first principle is that you must not fool yourself ndash and you are the easiest person to foolrdquo mdash Richard Feynman

ldquoThe most important thing to do if you find yourself in a hole is to stop diggingrdquo mdash Warren Buffett

ldquoGreat teams do not hold back with one another They are unafraid to air their dirty laundry They admit their mistakes their weaknesses and their concerns without fear of reprisalrdquo mdash Patrick Lencioni

ldquoI once had a ski instructor who had taught Michael Jordan the greatest basketball player of all time how to ski He explained that Jordan enjoyed his mistakes and got the most out of them At the start of high school Jordan was an unimpressive basketball player he became a champion because he loved using his mistakes to improve Yet despite Jordanrsquos example and of countless other successful people it is far more common for people to allow ego to stand in the way of learningrdquo mdash Ray Dalio

ldquoPeople try to live within their income so they can afford to pay taxes to a government that canrsquot live within its incomerdquo mdash Robert Half

ldquoSnap back to reality Oh there goes gravityrdquo mdash Eminem

Miscellaneous

PERFORMANCE

11

STRUCTURE

OBJECTIVE AND STRATEGY

IP-Brazilian Equities Class is a class of the IP Fund SPC VBF Segregated Portfolio which is an exempted company registered as a segregated portfolio company incorporated under the provisions of the Companies Law of August 3rd 2006 of the Cayman Islands

IP-Brazilian Equities Class aims to provide absolute returns through long positions in Brazilian companies that exhibit interesting combinations of criteria such as (i) excellent business models (ii) a competent and ethical management team (iii) an alignment of interests between management and minority shareholders and (iv) prices that provide a good margin of safety and allow for substantial absolute return over a minimum 5-year investment horizon

PERFORMANCE IP-BRAZILIAN EQUITIES

LAST 12 MONTHS RETURNS (US$)(1)PERFORMANCE

2102

IP-

Braz

ilian E

quiti

es

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s

Since February 26th 1993(1)

ANNUAL RETURNS (US$)(1)

EQUITY HOLDING CHARACTERISTICS

CONCENTRATION

ANNUALIZED RETURNS (US$)(1)

(1) For the period before IP-Brazilian Equities inception on April 2010 for reference we show (a) the Brazilian investment vehicle (IP-Participaccedilotildees) results in dollar terms from February 1993 to December 1995 and (b) theoffshore vehicle (IP-Participaccedilotildees Class) results from December 1995 to April 2010 The returns up to April 2010 are net of all fees and after that gross of performance fee(2) Inception of IP-Participaccedilotildees 02261993

portfolioTop 5 53Next 5 17Other 7Cash 21

portfolioSmall Caps (smaller than US$ 1bi) 26Mid Caps (between US$ 1bi and US$ 5bi) 16Large Caps (larger than US$ 5bi) 36

IP-BR Equities () Ibovespa () MSCI EM ()December 15 -135 -526 -217November 15 179 -142 -389October 15 278 480 714September 15 -793 -1129 -297August 15 -1338 -1469 -901July 15 -974 -1240 -687June 15 131 308 -252May 15 -893 -1164 -399April 15 847 1780 772March 15 -818 -1103 -140February 15 -097 172 311January 15 -335 -641 06112 months -3466 -4103 -1460

IP-BR Equities () Ibovespa () MSCI EM ()2015 -3466 -4103 -14602014 -1123 -1437 -1822013 -1644 -2629 -2272012 1550 -142 18632011 -941 -2726 -18172010 2764 559 19202009 12767 14516 79022008 -5706 -5547 -53182007 5410 7343 39822006 4532 4641 32552005 2313 4409 34542004 2811 2816 25952003 8765 14104 56282002 -2636 -4601 -6002001 -758 -2398 -2372000 -099 -1808 -30611999 13673 6955 66411998 -2564 -3844 -25341997 -1153 3447 -11191996 3257 5323 5551995 334 -1377 -5211994 14254 5897 -7321993 5054 6395 6565

IP-BR Equities () Ibovespa () MSCI EM ()Last 5 years -1273 -2326 -448Last 10 years 357 -246 398Last 15 years 734 243 899Since Inception(2) 1468 797 657

IP-Brazilian Equities

12


STRUCTURE


IP-Participaccedilotildees Class is a class of the IP Fund SPC VBF Segregated Portfolio which is an exempted company registered as a segregated portfolio company incorporated under the provisions of the Companies Law of August 3rd 2006 of the Cayman Islands

IP-Participaccedilotildees Class aims to provide absolute returns through long positions in both Brazilian and foreign companies that exhibit interesting combinations of criteria such as (i) excellent business models (ii) a competent and ethical management team (iii) an alignment of interests between management and minority shareholders and (iv) prices that provide a good margin of safety and allow for substantial absolute return over a minimum 5-year investment horizon

3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s

PERFORMANCE IP-PARTICIPACcedilOtildeES CLASS

LAST 12 MONTHS RETURNS (US$)PERFORMANCE


ANNUAL RETURNS (US$)


CONCENTRATION

ANNUALIZED RETURNS (US$)

(1) Only Brazilian companies were taken into account in the market capitalization breakdown(2) For the period before IP-Participaccedilotildees Class inception on December 1995 for reference we show the Brazilian investment vehicle (IP-Participaccedilotildees) results in dollar terms The returns are net of all fees(3) Inception of the Brazilian investment vehicle IP-Participaccedilotildees 02261993


portfolioInternational Assets 45Small Cap (smaller than US$ 1bi)(1) 15Mid Cap (between US$ 1bi and US$ 5bi)(1) 0Large Cap (larger than US$ 5bi)(1) 11

IP-Part Class(2) () Ibovespa () MSCI EM ()December 15 -069 -526 -217November 15 064 -142 -389October 15 438 480 714September 15 -873 -1129 -297August 15 -910 -1469 -901July 15 -527 -1240 -687June 15 115 308 -252May 15 -447 -1164 -399April 15 689 1780 772March 15 -879 -1103 -140February 15 023 172 311January 15 -269 -641 061Last 12 months -2467 -4103 -1460

IP-Part Class(2) () Ibovespa () MSCI EM ()2015 -2467 -4103 -14602014 -405 -1437 -1822013 -616 -2629 -2272012 1823 -142 18632011 -1047 -2726 -18172010 3952 559 19202009 12767 14516 79022008 -5706 -5547 -53182007 5410 7343 39822006 4532 4641 32552005 2313 4409 34542004 2811 2816 25952003 8765 14104 56282002 -2636 -4601 -6002001 -758 -2398 -2372000 -099 -1808 -30611999 13673 6955 66411998 -2564 -3844 -25341997 -1153 3447 -11191996 3257 5323 5551995 334 -1377 -5211994 14254 5897 -7321993 5054 6395 6565

IP-Part Class(2) () Ibovespa () MSCI EM ()Last 5 years -643 -2326 -448Last 10 years 823 -246 398Last 15 years 1055 243 899Since Inception(3) 1692 797 657

13

TERMS AND CONDITIONS

IP-BRAZILIAN EQUITIES IP-PARTICIPACcedilOtildeES CLASS

Minimum Initial

Management fee

Minimum Balance Left

Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000

bull 2 pa of the Net Asset Valuebull Accrued daily and paid monthly

US$ 10000000

US$ 10000000

bull 15 of the increase of the Net Asset Value per Sharebull Accrued daily and paid semi-annualyor on redemption subjetct to highwater mark

The redemption day shall be the lastbusiness day of the second subsequentmonth following receipt by the RTAof the redemption form Payment ofredemption proceeds shall generally bemade within 10 business days followingthe redemption day

Daily

US$ 100000000


US$ 100000000

US$ 10000000

bull 20 computed on returns in excess of Libor + 6bull Accrued daily and paid semi-annualyor on redemption subjetct to highwater mark

The Redemption Day shall be the lastbusiness day of the second subsequentmonth following receipt by the RTAof the redemption form Payment ofredemption proceeds shall generally bemade within 10 business days followingthe redemption day

Daily

Terms and Conditions

14


ADDITIONAL INFORMATION


Net Asset ValueCalculator

Auditor

Bank

Brazilian Custodian

Inception date

Registrar and TransferAgent

Investment Manager

BNY Mellon Serviccedilos Financeiros DTVM SAPhone +55 21 39744600wwwbnymelloncombrsf

KPMG

UBS AG Stamford Branch CT (USA)

Banco BNY Mellon SA

UBS Fund Services (Cayman) LtdMain Officer Sherie DawkinsEmail ol-cayman-rtagroup3ubscomPhone +345 914 6164

Investidor Profissional Gestatildeo de Recursos LtdaPhone +55 21 21040506wwwip-capitalpartnerscomcontactusip-capitalpartnerscom


KPMG


Banco BNY Mellon SA

April 1st 2010



15

In 2015 PIPA held its seventh edition

Twenty-six contemporary art experts

nominated 66 artists to compete for a

total of R$182000 (in cash prizes and

artist residencies) in four categories

In June four of these artists were

declared finalists and their works

were exhibited at the Museum

of Modern Art of Rio de Janeiro

(MAM-RJ) between September

and November

The art critic and independent

curator Luisa Duarte commented in

an article entitled ldquoThe current state

of artrdquo (O Globo) that PIPA - mainly

due to its role as a ldquobarometer of the

value of recent [contemporary art]

productionrdquo - should be followed

by anyone who is interested in the

past and future of contemporary art

in Brazil

The four finalists Cristiano Lenhardt

(Itaara RS 1975) Leticia Ramos

(Santo Antocircnio da Patrulha RS 1976)

Marina Rheingantz (Araraquara SP

1983) and Virginia de Medeiros (Feira

de Santana BA 1973) competed

in two categories PiPA the main

category in which the winner is

chosen by the Awards Jury (with a

prize of R$130000 a portion of which

is used to finance a participation in

the residency program at Residency

Unlimited New York) and the PiPA

Popular vote exhibition in which

the public at the exhibition chooses

a winner (with a prize of R$24000)

Following in the footsteps of Tatiana

Blass and Alice Miceli (winners in 2011

and 2014 respectively) the jury and

the public selected the same artist

for the third time since PIPA was

created in 2010 There were 1374

votes cast by the public and a five

jury who members selected Virginia

Medeiros as the winner The Awards

Jury was composed of Cauecirc Alves

Gilberto Chateaubriand Luiz Camillo

Osorio Pablo Leon de la Barra and

Rosacircngela Rennoacute

De Medeiros became known in the

Brazilian art scene in 2006 when one

of her works was selected for the 27th

Satildeo Paulo Biennial Since then she has

been nominated for two editions of

PIPA awarded by the Funarte National

Visual Arts Network (Rede Nacional

Funarte de Artes Visuais) and the

Videobrasil Contemporary Art Festival

(Festival de Arte Contemporacircnea

Videobrasil) She has also attended

artistic residency programs in New

York and Quebec and exhibited at

major museums and galleries

PIPA 2015

Virginia de Medeiros is the winner of PIPA 2015

Virginia de MedeirosldquoManilas bar - casa da Marinalvardquo from series ldquoEm torno dos meus mariacutetimosrdquo 2014 digital photograph

on cotton paper 50x70 cm Collection of the Museu de Arte do Rio - MAR

PIPA

16


PREcircMIOIP CAPITAL PARTNERSDE ARTE

PIPA

In 2016 De Medeiros will spend three months in New

York She will participate in the Residency Unlimited (RU)

artist residency program Based in a church in Brooklyn

RU promotes the interaction of resident artists and

curators among themselves and with the contemporary

art scene offering visits to studios lectures monthly

lunches as well as technical support for their research

and work

De Medeirosrsquo time at the residency can be followed in

three special videos made exclusively for PIPA They will

be released throughout 2016 on the websites pipaorgbr

and pipaprizecom

IP-CAPITAL PARTNERSCOM

AV ATAULFO DE PAIVA 2559ordm ANDAR LEBLONRIO DE JANEIRO RJ - BRASILCEP 22440032

This document is published exclusively for the purpose of

providing information and conferring transparency to the

management carried out by IP Capital Partners is not the

Offering Memorandums of the IP Global Fund Ltd and IP Fund

SPC (ldquoFundsrdquo) and is not to be considered as an offer for the

sale of Shares of the Funds or of any other security The Funds

are prohibited from making any invitation to the public in The

Cayman Islands to subscribe for any of their Shares Shares

may be subscribed for by exempted or ordinary non-resident

companies or other exempted or non-resident entities

established in The Cayman Islands Shares of the Funds may not

be offered or sold within the United States or to any US Person

The Funds may not be sold redeemed or transferred in Brazil

The offer and sale of Shares of the Funds in certain jurisdictions

may be restricted by law Before subscribing for the Shares each

prospective investor should (i) carefully read and retain the

Offering Memorandums of the Funds and the relevant Annex

in respect of the Class of Shares (ii) consult with hisherits own

counsel and advisors as to all legal tax regulatory financial

and related matters concerning an investment in the Funds

Past performance does not guarantee future results IP Capital

Partners takes no responsibility for the accidental publication of

incorrect information nor for investment decisions taken based

on this material Access to this document or use of the services

or information provided herein is prohibited by any person or

entity in any jurisdiction or country where such distribution or

use would be contrary to local law rule or regulation

INDEX


Miscellaneous 09

Performance





PIPA 15

4













RemindeRs




in Brazil































of Brazil










5


PRoductive FRiction













made some mistakes





















best judgment



















valuable survivors

6












onersquos mind














polished stones












PRosPects






















7









end for good















also increased


























of stress







8









Happy 2016


9

MISCELLANEOUS







Miscellaneous

PERFORMANCE

11

STRUCTURE






2102

IP-

Braz

ilian E

quiti

es

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s




CONCENTRATION









12


STRUCTURE




3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s






CONCENTRATION








13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



INDEX


Miscellaneous 09

Performance





PIPA 15

4













RemindeRs




in Brazil































of Brazil










5


PRoductive FRiction













made some mistakes





















best judgment



















valuable survivors

6












onersquos mind














polished stones












PRosPects






















7









end for good















also increased


























of stress







8









Happy 2016


9

MISCELLANEOUS







Miscellaneous

PERFORMANCE

11

STRUCTURE






2102

IP-

Braz

ilian E

quiti

es

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s




CONCENTRATION









12


STRUCTURE




3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s






CONCENTRATION








13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



4













RemindeRs




in Brazil































of Brazil










5


PRoductive FRiction













made some mistakes





















best judgment



















valuable survivors

6












onersquos mind














polished stones












PRosPects






















7









end for good















also increased


























of stress







8









Happy 2016


9

MISCELLANEOUS







Miscellaneous

PERFORMANCE

11

STRUCTURE






2102

IP-

Braz

ilian E

quiti

es

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s




CONCENTRATION









12


STRUCTURE




3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s






CONCENTRATION








13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



5


PRoductive FRiction













made some mistakes





















best judgment



















valuable survivors

6












onersquos mind














polished stones












PRosPects






















7









end for good















also increased


























of stress







8









Happy 2016


9

MISCELLANEOUS







Miscellaneous

PERFORMANCE

11

STRUCTURE






2102

IP-

Braz

ilian E

quiti

es

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s




CONCENTRATION









12


STRUCTURE




3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s






CONCENTRATION








13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



6












onersquos mind














polished stones












PRosPects






















7









end for good















also increased


























of stress







8









Happy 2016


9

MISCELLANEOUS







Miscellaneous

PERFORMANCE

11

STRUCTURE






2102

IP-

Braz

ilian E

quiti

es

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s




CONCENTRATION









12


STRUCTURE




3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s






CONCENTRATION








13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



7









end for good















also increased


























of stress







8









Happy 2016


9

MISCELLANEOUS







Miscellaneous

PERFORMANCE

11

STRUCTURE






2102

IP-

Braz

ilian E

quiti

es

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s




CONCENTRATION









12


STRUCTURE




3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s






CONCENTRATION








13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



8









Happy 2016


9

MISCELLANEOUS







Miscellaneous

PERFORMANCE

11

STRUCTURE






2102

IP-

Braz

ilian E

quiti

es

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s




CONCENTRATION









12


STRUCTURE




3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s






CONCENTRATION








13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



9

MISCELLANEOUS







Miscellaneous

PERFORMANCE

11

STRUCTURE






2102

IP-

Braz

ilian E

quiti

es

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s




CONCENTRATION









12


STRUCTURE




3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s






CONCENTRATION








13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



PERFORMANCE

11

STRUCTURE






2102

IP-

Braz

ilian E

quiti

es

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s




CONCENTRATION









12


STRUCTURE




3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s






CONCENTRATION








13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



11

STRUCTURE






2102

IP-

Braz

ilian E

quiti

es

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s




CONCENTRATION









12


STRUCTURE




3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s






CONCENTRATION








13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



12


STRUCTURE




3308

IP-

Part

Clas

s

465

Ibove

spa

321

MSCI

Emerg

ing M

arket

s






CONCENTRATION








13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



13



Minimum Initial

Management fee


Minimum Additional

Performance fee

Redemption

Subscription

US$ 10000000


US$ 10000000

US$ 10000000



Daily

US$ 100000000


US$ 100000000

US$ 10000000



Daily


14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



14





Auditor

Bank

Brazilian Custodian

Inception date


Investment Manager


KPMG


Banco BNY Mellon SA




KPMG


Banco BNY Mellon SA

April 1st 2010



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



15











and November










in Brazil












































PIPA 2015




PIPA

16



PIPA








and work




and pipaprizecom



16



PIPA








and work




and pipaprizecom



quarterly report · dilma rousseff’s government has lost the ability to disguise its real...

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