JP Morgan Highbridge Finds Sweet Spot

Last year, Highbridge Capital Management acquired a majority stake in Gávea Investimentos, a Brazilian manager. Turns out that Highbridge also bought a large block of shares in another Brazilian business—one of the world’s largest producers of sugar and ethanol, Cosan Ltd.

Highbridge held almost half-a-billion dollars of Cosan stock as of the end of 2010.  Cosan, which is listed on the NYSE, recently announced a joint venture with Shell International Petroleum to produce ethanol, sugar and power.

Ethanol made of sugarcane is generally lower in cost and energy use compared to ethanol made of grain as in the US. Hence Brazil and in particular Cosan have a competitive advantage in producing the fuel.  Cosan is involved in developing new types of sugarcane for improving efficiency in ethanol production.

Highbridge – JP Morgan’s hedge fund business, acquired by the bank in stages starting in 2004 – manages funds in a variety of credit and equity strategies.

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One Response to “JP Morgan Highbridge Finds Sweet Spot”

  1. JP Morgan Highbridge Holds Latin Franchise « HedgeFundSmarts Says:

    […] year Highbridge bought almost half-a-billion dollars of Cosan stock—- Cosan, a large Brazilian producer of sugar and sugar-based ethanol, is in a venture with […]

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