Investment manager

XP Inc. Partners with Giant Steps, One of Brazil’s Leading Quantitative Investment Managers


SÃO PAULO – (COMMERCIAL THREAD) –XP Inc. (Nasdaq: XP), a leading technology-driven platform and trusted provider of low-cost financial products and services in Brazil, has announced an agreement to acquire a minority stake in Giant Steps, the leader in systematic funds in Brazil. With approximately R $ 7 billion in assets under management, Giant Steps is the largest quantitative investment manager in Brazil, and the combination consolidates XP as the most comprehensive ecosystem of investment managers and distributors in the country.

With XP, Giant Steps is able to accelerate its national and international expansion plans, develop the company’s product portfolio with the creation of new strategies and hire talent from other countries by opening branches. abroad.

The quantitative fund industry has grown rapidly in recent years. Currently, 8 of the top 10 global managers focus on systematic / quantitative strategies, with these strategies accounting for over 30% of total assets under management in the United States. In contrast, systematic / quantitative strategies represent less than 2% of total assets under management in Brazil.

“This partnership places XP alongside one of the most innovative managers in the country, which in recent years has generated solid results for its clients through the intensive use of technology. This combination with an exceptional team positions Giant Steps as the main player in this rapidly growing market, ”said Gustavo Pires, Partner at XP Inc.

“We chose XP because we believe that with their support we will further accelerate our investments in areas that we believe are sources of competitive advantage: people, technology infrastructure expansion and acquisition / the development of alternative data – such as sentiment analysis on Twitter for image and video processing, ”commented Flavio Terni, one of the founding partners of Giant Steps.

With one of the best track records in the multi-market fund industry over the past decade, flagship fund Giant Zarathustra has achieved an absolute return of 290% since 2012 compared to 110% for CDI. Giant Sigma (33% against 13% CDI since 2018) completes the portfolio. Additionally, the company recently announced the launch of an alternative data-based equity fund as well as a crypto fund, the first in the Brazilian market to have Bitcoin (BTC) as a benchmark.

“In a world where the order transaction speed is a fraction of a second and the creation of information far greater than the human absorptive capacity, refusing to integrate technology into the investment process is turning a blind eye. on market developments, ”says Terni.

Completion of the transaction is subject to compliance with certain conditions precedent.

About XP

XP is a leading technology-driven financial services platform and a trusted provider of low-cost financial products and services in Brazil. XP’s mission is to disintermediate legacy models from traditional financial institutions by:

  • Train new categories of investors;

  • Democratize access to a wider range of financial services;

  • Develop new financial products and technological applications to empower clients; and

  • To provide high quality customer service and customer experience in industry in Brazil.

XP provides clients with two main types of offerings, (i) financial advisory services for retail clients in Brazil, high net worth clients, international clients and corporate and institutional clients, and (ii) a platform of open financial products providing access to more than 800 investment products, including equities and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real estate investment funds (REITs) and others from XP, its partners and competitors.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of their first publication and are based on expectations, estimates, forecasts and projections as well as management’s beliefs and assumptions. Words such as “expect”, “anticipate”, “should”, “believe”, “hope”, “target”, “project”, “objectives”, “estimate”, “potential”, “predict”, “May,” “shall”, “could”, “could”, “intention”, variations of these terms or the negative of such terms and similar expressions are intended to identify such statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond the control of XP Inc.

Actual results of XP, Inc. could differ materially from those stated or implied in forward-looking statements due to several factors, including, but not limited to: competition, change of customers, regulatory actions, change in external forces, among other factors.