Ace Capital Gestao de Recursos Ltda, a Brazilian hedge fund firm led by former Banco Santander SA traders, has enhanced its computer-driven investment strategies with the acquisition of quant investment firm Saires Capital Gestão de Recursos Ltda.

The report cites Ricardo Denadai, Ace's CEO and Co-Founding Partner, as confirming that his Sao Paulo-based firm, which manages approximately BRL4.6bn ($818M), has purchased a controlling stake in Saires, as part of a broader plan to strengthen its rules-based investment strategies alongside its discretionary trading.

With the acquisition, Ace will absorb Saires's team and add quantitative funds Dinamico and Multicenarios to its portfolio, which will now be managed by a group led by Juliano Faria.

“Brazilian hedge funds still trail global competitors in terms of technology and systematic trading,” said Denadai, highlighting the firm’s goal to close the gap in these areas.

Ace Capital was established in 2019, as part of a wave of hedge funds founded by former banking executives in Brazil. The firm expanded its focus two years ago by merging with equity-focused asset manager Grou Capital. In the Saires deal, Ace also acquired a minority stake previously held by local asset manager Sparta.