The significant drop in commodities’ price affected the margins of industries and resellers in the agribusiness chain, especially in 2023 and 2024. Diego Coelho, founding partner and manager of Brave Asset, highlights that, despite the difficulties faced by the sector, he remains one of the best-structured assets in the manager.
The manager discussed the subject during episode 155 of the program Outliers Infomoneypresented by Clara Sodré, XP background analyst, and Fabiano Cintra, head analysis head of XP.
To mitigate the impacts of volatility, Brave adopts a crop financing strategy. Coelho explains that the sector has a peculiarity: it works with long term receivables, with an average of 180 days. “We analyzed the company’s receivable portfolio and bought this portfolio, anticipating the funds for the company, which receives cash. We got the receivable to discount later,” he says.
Continues after advertising
Last episode of Outilers Infomoney:
“Brazil has the best central bank in the world,” says Paulo Passoni
The more diverse your investor group, the better, analyzes Paulo Passoni
Continues after advertising
The manager points out that, even in a challenging year as 2024, Brave had $ 1 billion in salaries in the agro segment, of which only $ 5 million follow open. “If we look in percentage terms, this value is too low,” he points out. For him, despite the difficulties, it is possible to structure good operations by focusing on the best companies in the sector.
Other segments
Brave Asset also prioritizes investments in industries, considering that this business model is more perennial, with immobilized assets and previously made investments. On the other hand, the manager has become more restrictive with retail, due to the reduced margins and the high level of leverage of companies in the sector.
“We are interested in the world of payrolls and recently we enter the universe of credit cards, as well as multi -centered and multi -sectional operations,” says Coelho.
Continues after advertising
The pricing of a Credit Rights Investment Fund (FIDC) involves risk-rector analysis. For this, Brave uses different metrics. “We have a quantitative analysis, which evaluates numbers such as performance, and a qualitative analysis, which examines how the operation originates and approved within the fund,” he explains. The analysis also includes an individual review of assets within the wallet, identifying those more conservative or the most aggressive. “All of this leads us to the internal rating of the product, which allows us to define fund pricing,” he adds.
