Business
XP Inc. Partners With Giant Steps, a Leading Quantitative Investment Manager in Brazil
SÃO PAULO--(BUSINESS WIRE)-- XP Inc. (Nasdaq: XP), a leading, technology-driven platform and a trusted provider of low-fee financial products and services in
About this update from Xp Inc.
[{"type":"text","content":" SÃO PAULO--(BUSINESS WIRE)--\nXP Inc. (Nasdaq: XP), a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil, announced an agreement to acquire a minority stake in Giant Steps, the leader in systematic funds in Brazil. With approximately R$7 billion of assets under management, Giant Steps is the largest quantitative investment manager in Brazil, and the combination consolidates XP as the most complete ecosystem of investment managers and distributors in the country.\n\nWith XP, Giant Steps is positioned to accelerate its national and international expansion plans, build out the company’s product portfolio with the creation of new strategies and hire talent from other countries by opening branches offshore.\n\nThe quantitative fund industry has been experiencing rapid growth in recent years. Currently, 8 of the 10 largest managers in the world focus on systematic/quantitative strategies, with these strategies representing more than 30% of total assets under management in the United States. In contrast, systematic/quantitative strategies represent less than 2% of the total AUM in Brazil.\n\n“This partnership places XP alongside one of the most innovative managers in the country, which has been generating robust results in recent years for its clients through the intensive use of technology. This combination along with an exceptional team, positions Giant Steps as the leading player in this rapidly growing market,” stated Gustavo Pires, partner at XP Inc.\n\n“We have chosen XP as we believe that with their support we will further accelerate our investments in fronts that we believe are sources of competitive advantage: people, expansion of technological infrastructure and the acquisition/development of alternative data – such as sentiment analysis on Twitter to image and video processing,” commented Flavio Terni, one of the founding partners of Giant Steps.\n\nWith one of the best track records in the multimarket fund industry over the last decade, the flagship fund, Giant Zarathustra, has recorded an absolute return of 290% since 2012 against 110% for the CDI. Giant Sigma (33% versus 13% CDI since 2018) complements the portfolio. In addition, the company recently announced the launch of an equity fund based on alternative data as well as a crypto fund, the first in the Braz...