Dynamo Cougar Master Classe de Investimento em Ações – Responsabilidade Limitada
Investment Goals
The objective of the Class is to provide its participants with real appreciation of their shares over the medium and long term by investing in a diversified portfolio of securities, with the principal risk factor being the price fluctuations of shares admitted to trading on the spot market of a stock exchange or an organized over-the-counter market entity, in compliance with applicable legal and regulatory limitations.
Investment Policy
The Fund’s investment philosophy for equity management is based solely on fundamental analysis, aiming—through active engagement with the companies—to achieve consistent medium- and long-term returns with low volatility and reduced concern for immediate liquidity.
Target Public
The Fund is intended exclusively for qualified investors, as defined under the current regulations of the Brazilian Securities and Exchange Commission (“CVM”), and which are constituted as investment funds or other investment vehicles administered and/or managed by the Administrator or by companies affiliated with it.
Key Risk Factors
The Manager’s risk assessment and management process permeates the entire investment decision‐making process. An asset’s risk is not determined numerically from a precise definition of variance of returns around the mean, but is incorporated as a variable throughout the fundamental analysis process. With regard to portfolio risk measurement, the approach practiced is primarily bottom-up, emphasizing the specific risk analysis of each asset. Additionally, the Manager considers underlying sector diversification issues and their implications for portfolio concentration.
Notwithstanding the risk-assessment process applied by the Manager in constructing the Class’s portfolio, we highlight below the principal risk factors of the Class:
- Capital Loss Risk: The investment strategies employed by the Class and the Master Class may result in significant capital losses for their unitholders, including the total loss of invested capital.
- Market Risk: Fluctuations in asset prices and quotations may negatively impact the net asset value of the Class and the Master Class.
- Liquidity Risk: A reduction in demand for the Master Class’s assets may prevent the Class from efficiently meeting its obligations and lead to significant losses when trading those assets.
- Concentration Risk: The portfolios of the Class and the Master Class may be concentrated in assets from a small number of issuers, which can increase exposure to issuer-specific risks and cause volatility in unit values.
- Derivatives Risk: The use of derivative strategies as part of the investment policy may result in significant capital losses for unitholders of the Master Class and, consequently, for unitholders of the Class.
- Credit Risk: The Class and the Master Class are exposed to the risk of default by counterparties and issuers of the assets, which may result in loss of income and invested capital. Changes in the financial, economic, or political conditions of issuers may significantly affect asset prices and liquidity.
For a comprehensive assessment, we recommend reading the fund’s Bylaw, where detailed information on all risk factors is available.
