Verde Asset Management, one of Brazil’s best-known hedge fund managers, has been hit by what its says is the biggest case of Brazilian corporate fraud on record, after accountancy 'inconsistencies' led to the collapse of Brazilian retailer Americanas, according to a report by Bloomberg.

The report cites an investor note from the firm as revealing that exposure to the retailer's local bonds resulted in a 14 basis-point loss last month, trimming monthly gains to 2.7%.

Americanas saw its shares and bonds collapse in spectacular fashion after a BRL20 billion 'hole' was found in its accounts leading the company to file for bankruptcy in less than two weeks.

The flagship hedge fund at Verde, which was founded by industry veteran Luis Stuhlberger, is reportedly up over 21,800% since inception in 1997.