Growing fears of a global economic downturn have prompted some of Brazil’s largest hedge-fund managers to cut their commodities bets, according to a report by Bloomberg.

The report says that both Legacy Capital and Ibiuna Investimentos are among the funds involved with the former having trimmed the net exposure of its flagship hedge fund in the past month, and the latter unwinding a bullish position in oil prices.  

The impact of higher interest rates on growth forecasts, rather than inflation, is an increasing concern for investors, and “points to a hostile environment for risk assets in the third quarter,” Ibiuna said in a note to clients.