AZZA3 Joins Model Portfolio with Real Estate Funds and Ibovespa

On October 28, the Rico aos Poucos model portfolio shifted its allocation to 20% in real estate funds (up from 10%) and 10% in the Ibovespa (up from 5%), funded by cash reserves and auctioned real estate holdings. AZZA3 shares now account for half of the equity allocation, purchased following a sharp sell-off in the Brazilian stock market after the election.

Why Is AZZA3 Falling — And Why Did It Enter the Portfolio?

AZZA3 shares, issued by Azzas 2154 S.A., were selected for the model portfolio to make up half of the Ibovespa allocation, with an entry price of R$ 14.86 on October 28, 2026. This decision stems from a stressed market environment rather than an isolated view of the company: the Brazilian stock market dropped sharply following the election, and the portfolio treats this pessimism as an opportunity.

This update does not detail the specific causes behind AZZA3's decline. Readers interested in that background can find our breakdown in our analysis of why AZZA3 dropped after the election. Here, the focus is elsewhere: what the portfolio did with its cash and what this means for followers.

Specifically, the portfolio adjusted four asset weights at once.

What Changed in the Model Portfolio Weights?

Four allocations shifted: cash decreased, real estate funds doubled, the Ibovespa doubled, and auctioned real estate was reduced to zero. The U.S. dollar and TLT remained unchanged. The figures below represent percentage points of the total portfolio.

The math centers on cash. It provided points equally to real estate funds and the Ibovespa, while receiving part of the allocation released from auctioned real estate; the remaining portion from the real estate holdings went directly to real estate funds.

But why increase exposure to equities and real estate funds right now, and why did the Ibovespa allocation stop there?

Why Did the Portfolio Increase Real Estate Funds and Ibovespa?

Because, in the portfolio's view, current market stress presents opportunities born from risk and pessimism. With the stock market sliding hard after the election, cash that was previously on the sidelines was deployed into discounted assets, with real estate funds receiving the largest share of the reinforcement.

The Ibovespa allocation only doubled and went no further for methodological reasons: increasing exposure to the broad index beyond that point would only make sense if specific stocks within it were chosen. Buying the entire index with a higher weight would mean betting on the market average, whereas the portfolio prefers betting on individual names it can defend one by one. That leads to the new additions detailed in the next section.

Before that, however, it is necessary to explain what was removed, as the exit from auctioned real estate is often misunderstood.

Did Auctioned Real Estate Leave Because the Thesis Failed?

No. The model portfolio removed auctioned real estate—taking it from 10% to zero—without abandoning the investment thesis. The exit stems from the practical limitations of holding this asset class in a portfolio followed by retail investors:

• Lack of liquidity: real estate cannot be sold with a single click, unlike a real estate fund unit or a stock.
• Requires higher initial capital to enter than the portfolio's other assets.
• The portfolio's tracking method failed to capture the strategy's typical profit, which involves buying cheap and selling at fair market value.
• The thesis of buying below value remains intact; what changes is the vehicle used to track it.

This last point carries the most weight. A portfolio that measures asset price fluctuations cannot capture the gains of someone who buys an auctioned property and resells it at market value. Consequently, the tracking method fell short for this asset, even though the underlying thesis remained sound. The five points shifted to real estate funds went into a conceptually similar asset (real estate), but one that is liquid and trackable on a daily basis.

Which Specific Assets Are Entering, and at What Price?

For the first time, the portfolio is naming the specific assets within its equity and real estate fund allocations, along with their entry prices as of October 28, 2026. The performance of each name will be tracked from that date forward. The remainder of each allocation follows the broader index: the Ibovespa itself for equities and the IFIX for real estate funds.

The points column represents the category percentage multiplied by the asset's weight within it. This shows, for example, that AZZA3 alone accounts for five points of the total portfolio—matching the rest of the Ibovespa combined—while the three selected funds total ten points. Half of the real estate fund allocation follows the IFIX precisely to avoid depending on just three names.

Among the funds, TGAR11 was recently covered in our analysis on dividend cut risks and what liquidation value protects, while TRXF11 was analyzed following its recent acquisitions, share offerings, and unit buybacks. It is worth reading those analyses before drawing any conclusions about the entry prices.

How to Buy Each Portfolio Asset on B3?

Not every item has an obvious ticker symbol. For those that trade on B3 or have equivalent instruments:

• TLT, long-term U.S. Treasury bonds: the ticker on B3 is BTLT39, a BDR. Our analysis of TLT and market expectations explains this exposure.
• Gold: GOLD11.
• Tesouro IPCA+: the specific bond is Renda+ 2065, currently holding a zero weight in the portfolio.
• S&P 500 and Bitcoin: no specific ticker is indicated in the portfolio, and both currently hold a zero weight.

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Autor do artigo Edinei Bauer

Investidor e fundador do Rico aos Poucos.

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