Hedge Investments

Hedge Investments is one of the most relevant independent managers in Brazil's listed real estate market. Founded in 2017 by André Freitas and a team from Credit Suisse Hedging-Griffo (CSHG), it now oversees about R$ 11 billion in management and administration (Feb/2026), spread across four strategies and more than 26 funds. On our radar the firm has 13 analyzed FIIs, with an average manager score of 7.2 (GOOD) — a level that reflects recognized technical competence combined with an intra-group structure that calls for vigilance. From Av. Brigadeiro Faria Lima, in Itaim Bibi, it positions itself as a reference in brick-and-mortar (shopping malls, logistics and offices), receivables and funds of funds.

Track record and governance

Hedge's DNA is its main credential. The team spent 14 years at Hedging-Griffo (later CSHG), where it built more than R$ 2 billion in FIIs. André Freitas co-founded Hedging-Griffo alongside names such as Luis Stuhlberger, and the firm has worked in real estate since 2003, with historic firsts: Brazil's 1st FIP and the 1st actively managed FII. That history translates into relevant recent innovations — HGBS11 was the first Brazilian FII to join the global FTSE EPRA Nareit index, and HERT11 was the country's first brick-and-mortar FII ETF.

On governance, the funds are audited by top-tier firms (Grant Thornton, PwC, KPMG), and throughout 2025-2026 the manager carried out the adaptation to CVM Resolution 175, updating bylaws and increasing transparency with ANBIMA. Events that reinforce its value-creation culture include the pioneering unit buyback program at HFOF11 (cancellation of ~8.6 million units at an average discount of 18.1%) and active portfolio recycling at HGBS11 (Multiplan in via PSC, Suzano out). HGBS11, by the way, carries a brAA+ rating from S&P Global.

Strategy and funds under management

Taken as a whole, Hedge covers practically the entire spectrum of the real estate market: shopping centers (seven funds, from the giant HGBS11 to single-asset theses such as FVPQ11, FLRP11, ATSA11, HPDP11 and FIGS11), logistics/industrial (HLOG11, PQAG11), corporate offices (CJCT11, HOFC11), receivables (HREC11), development and fund of funds (HFOF11). The spread of scores is wide — from 8.0 (HGBS11) to 2.6 (HOFC11) — and that is informative: the liquid, diversified flagships deliver consistency (HGBS11 with a net IRR of 15.4% p.a. since 2006 and a single fee of 0.60% with no performance fee; HFOF11 with a total book return of 26.96% in 2025 against 21.15% for the IFIX), while single-asset funds fully inherit the risk of the underlying property.

The fee policy is a competitive edge: between 0.20% and 0.83% p.a., with no performance fee in any fund — PQAG11 charges just 0.20%. Dividend consistency is good in the mature assets (FIGS11 with a stable DPS of R$ 0.48 for 12 months; PQAG11 with a nominal path of +40% in 5 years via an atypical BTS contract until 2034), but fragile where there is vacancy or repositioning.

The structural point to highlight is the intra-group conflict. It shows up on three fronts: HREC11 has ~75% of its net assets in CRIs whose borrower is another fund of the firm itself (HDOF, Hedge AAA, Hedge Logística, HDEL); HFOF11 keeps about 50% of its portfolio in in-house funds; and HGBL11 is a hybrid structure with 78% of its net assets in PQAG11 units, creating overlapping layers and a potential double fee. The funds complement each other — the firm can finance and package its own theses — but they also overlap, requiring unitholders to understand that they may be buying the same exposure through different vehicles.

Strengths and concerns

• Veteran team from CSHG/Hedging-Griffo, with more than 20 years in real estate and proven firsts (1st FIP, 1st active FII, 1st FII in a global index).
• Lean and transparent fee structure (0.20% to 0.83% p.a., no performance fee), below the industry average.
• Active management that creates value: pioneering buyback at HFOF11, portfolio recycling at HGBS11 and premium logistics assets (HLOG11 with Unilever, Boticário and Eurofarma; P/BV of 0.75).
• Top-tier auditing and a brAA+ rating on the anchor fund.

• Recurring intra-group conflict of interest (HREC11 financing in-house funds, HFOF11 with half in its own funds, HGBL11 dependent on PQAG11).
• Weak-tail single-asset funds: HOFC11 in runoff with zero distributions for 23 months (charging 0.83% even without distributing), FVPQ11 with a -48% revaluation in 2025 and ATSA11 down -41% in 5 years.
• Concentration of unitholders and assets: at HPDP11, a single unitholder holds 73% of the units; in several vehicles the thesis depends on a single property.
• Long and still inconclusive turnarounds, such as the 27% vacancy at CJCT11 even after five years of repositioning.

Which investor it suits

For investors seeking diversified, liquid exposure to Brazilian brick-and-mortar with low fees, Hedge's flagships (HGBS11 in shopping mall retail, HFOF11 in fund of funds, HLOG11 in logistics) represent the best the firm has to offer: professional management, a long track record and audited governance. It is a profile that fits those who prioritize recurring income and accept the natural volatility of the real estate segment.

More conservative investors, or those building a portfolio that avoids overlaps, should watch three things: the cross-exposure between the firm's own funds (so as not to buy the same thesis twice), the single-asset vehicles under repositioning, whose dividends depend on resolving vacancy (CJCT11, FVPQ11, ATSA11), and extreme runoff cases such as HOFC11, where fees keep being charged without distributions. The overall reading is clear: Hedge is a competent and well-regarded manager, but its portfolio is heterogeneous — the firm's quality does not automatically carry over to each fund, and individual selection remains decisive. Nothing here constitutes a buy recommendation.