Could it be that BTG Pactual is the “vampire squid” of the Brazilian financial system?
A recent note published by Veja’s Lauro Jardim reveals that Brazilian investment bank BTG Pactual (of billionaire Andre Esteves) was the main market beneficiary of yesterday’s (and today’s) meltdown of Eike’s oil company OGX shares. According to his column, BTG Pactual was “short” OGX shares before the announcement by the oil company that it cut its production forecast by 75%.”BTG Pactual was the major beneficiary of the market meltdown as it was positioned against OGX’s shares”, the statement said.
In another note, Estadao columnist Sonia Racy implied that this is a case of insider trading (“Alo CVM!”). Her note said the following: “A well-known Brazilian bank sold “tons” of OGX shares in the futures market last month. Did it know something that the market didn’t?”
But BTG Pactual denied any wrong-doing and made sure to send a statement by email explaining their activities on this matter:
“BTG Pactual would like to clarify that its brokerage only executed OGX stock buy and sell orders for its clients. The Bank itself also bought OGX stock in yesterday’s trading session. The Bank’s Equity Research team maintained its BUY rating on OGX shares. This combined evidence proved that there is no betting against the company, contrary to what the articles suggests.”