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Quarterly Report   FIRST QUARTER 2017


IP-PARTICIPAÇÕES

In this quarter, we discussed pricing power policies and how its misuse can undermine the sustainability and continuity of a business.

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FIRST QUARTER 2017

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IP-PARTICIPAÇÕES


In this quarter, we discussed pricing power policies and how its misuse can undermine the sustainability and continuity of a business.

FOURTH QUARTER 2016

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IP-PARTICIPAÇÕES


In this quarter, we discussed the main changes in our portfolio and briefly commented on three relevant positions: Itaúsa, Panvel and Wells Fargo.

THIRD QUARTER 2016

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IP-PARTICIPAÇÕES


In this report, we analyze the extraordinary growth of Amazon's retail business.

SECOND QUARTER 2016

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IP-PARTICIPAÇÕES / IP-BRAZILIAN EQUITIES


In this quarter, we will give an update of our view on the apparently more benign investment environment in Brazil, as well as the more volatile market abroad and how we have looked to benefit from these.

Reports 2017

FIRST QUARTER 2017

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IP-PARTICIPAÇÕES


In this quarter, we discussed pricing power policies and how its misuse can undermine the sustainability and continuity of a business.

Reports 2016

FOURTH QUARTER 2016

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IP-PARTICIPAÇÕES


In this quarter, we discussed the main changes in our portfolio and briefly commented on three relevant positions: Itaúsa, Panvel and Wells Fargo.

THIRD QUARTER 2016

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IP-PARTICIPAÇÕES


In this report, we analyze the extraordinary growth of Amazon's retail business.

SECOND QUARTER 2016

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IP-PARTICIPAÇÕES / IP-BRAZILIAN EQUITIES


In this quarter, we will give an update of our view on the apparently more benign investment environment in Brazil, as well as the more volatile market abroad and how we have looked to benefit from these.

FIRST QUARTER 2016

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IP-PARTICIPAÇÕES / IP-BRAZILIAN EQUITIES


In this quarter, we will comment on some of our main holdings: Panvel, Itaú, Berkshire Hathaway and Oracle. Additionally, we update our perspective on the Brazilian investment and political environment.

Reports 2015

FOURTH QUARTER 2015

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IP-PARTICIPAÇÕES / IP-BRAZILIAN EQUITIES


In this quarter, we discuss some prospects given the current investment scenario in Brazil. Additionally, we comment on the dynamics of our investment team discussions and its importance to minimize and fix mistakes.

THIRD QUARTER 2015

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IP-PARTICIPAÇÕES / IP-BRAZILIAN EQUITIES


This quarter, we recount a few reasons that make us excited about the future prospects of the fund amid the depressing news in Brazil. In particular, we highlight two of our invested companies, Berkshire Hathaway and Oracle.

SECOND QUARTER 2015

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IP-PARTICIPAÇÕES / IP-BRAZILIAN EQUITIES


In this quarter, we decided to discuss an unusual topic in our report: the incentive aspects behind the shale gas and shale oil boom in the United States.


In the PIPA section, we comment on the four finalists for the 2015 Prize.

FIRST QUARTER 2015

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IP-PARTICIPAÇÕES / IP-BRAZILIAN EQUITIES


This quarter, we detail our Liberty Global case. To this means we recount the story of its controlling shareholder, John Malone, a pioneer in the U.S. cable TV industry, who generated outstanding returns as the head of TCI between 1973 and 1998.

Liberty Global is an example of how we have dealt with the high valuation of Brazil's best companies: by extending the globalization of our funds, a process that began in 2008.

Reports 2014

FOURTH QUARTER 2014

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IP-PARTICIPAÇÕES / IP-BRAZILIAN EQUITIES


In this Quarterly Report, we reflect on the challenges of protecting and accumulating capital at attractive rates of return in the long term. Furthermore, we discuss the parallels between Itaú Unibanco and Wells Fargo, both investments of the IP-Funds.


As of this quarter, taking advantage of IP-Global's official establishment in London, the IP-Brazilian Equities and IP-Participações Quarterly Report will be published independently from the IP-Global Report.


This hopes to allow both teams to better express their ideas and opinions, and permit readers to fully enjoy the topics highlighted by each team.


We will soon release the IP-Global Report, which in this quarter will include a special edition.


THIRD QUARTER 2014

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In this Quarterly Report, in the IP-Brazilian Equities and IP-Participações section, we look back on the largest acquisition in Berkshire Hathaway's history: Burlington Northern Santa Fe (BNSF).


In the IP-Global section, we comment on the research team's move to London. Additionally, we reflect on the reasons that initially led us to invest in foreign companies.


In the PIPA section, we highlight an interview with Bernard Arnault, CEO of the LVMH Group, to the Financial Times about the Fondation Louis Vuitton.


Furthermore, we discuss the PIPA Online and the four finalists of the Prize featured on the front cover of this report and in exhibition at the MAM-Rio.



SECOND QUARTER 2014

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In this Quarterly Report we address the issue of vertical integration: in what stages of a business should a company participate in? Also mentioned is the crossroads which lies ahead for Brazil and how we have prepared for it.

In the IP-Global section, we discuss paradoxes often found in investment management. Furthermore, we discuss relevant aspects of Amazon's case in juxtaposition to Google's.

In the PIPA section, we introduce the finalists of the fifth edition of the PIPA Prize, which has been established as the main award for contemporary art in Brazil.

Furthermore, we feature Berna Reale, author of the work in the cover of this report, and whose career was spurred by the award.

FIRST QUARTER 2014

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


It is with great pleasure that we present the new IP logo and the redesigned Quarterly Report.


In the IP-Brazilian Equities section we discuss the strategy of buying back shares when the prices are attractive, which is common amongst several of the companies we invest in.


In the IP-Global section we reflect on the importance that patterns and switching costs have for some companies in the portfolio.


In the PIPA section, we look at the schedule for the fifth edition of the prize. We also introduce Cadu, the winner of the PIPA Prize 2013 and the artist responsible for the cover of this Report.

Reports 2013

FOURTH QUARTER 2013

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In the IP-Brazilian Equities section we mention that despite the small price correction in some Brazilian companies we admire, we remain cautions in the use of cash. We also comment on our second largest position, Panvel.

In the IP-Global section we discuss a topic that has always interested us: installed capacity optimization. We also follow-up on recently built positions.

THIRD QUARTER 2013

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


The IP-Brazilian Equities section recaps the evolution of the investment environment in Brazil and comments on the real estate segment, which has recently attracted our attention.
The IP-Global section brings updates about the portfolio and our positions in Microsoft and Apple.
Finally, we briefly present the works of the four PIPA 2013 Prize finalists.

SECOND QUARTER 2013

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In a period of turbulent markets, we highlight a few of the crises we have had to face over the 25 years of IP. In the IP-Brazilian Equities section, we discuss the recent protests in Brazil, the economic situation and the consequences for our investments. In the IP-Global section, we discuss a quick investment we made in Apple and our decision to resume our position in gold. We also invite the reader to share some thoughts on the energy matrix and the environmental question.

This time around, in the Investments section, we talk about three IP-Global positions: Cisco, Admiral and Thermo Fisher.

Finally, we announce the four finalists for the PIPA Prize 2013.

FIRST QUARTER 2013

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In the IP-Brazilian Equities section, we highlight some of the risks that we see in an environment of apparent optimistic consensus for the companies that we admire. We also comment on recent changes in the portfolio, including the complete sale of both Duratex and Porto Seguro.
In the IP-Global section, we mention the inflation of artists and asset managers registered with the Brazilian SEC and note the possible effects of the advances in the exploration of oil in North America.
Lastly, we announce the launching of the PIPA Prize 2013.

Reports 2012

FOURTH QUARTER 2012

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In this report we comment about the excellent performance of a group of companies that we admire, the risks caused by the apparent consensus that has been formed around them and how we have tackled this problem in the funds.

In the IP-Participações: VBF Portfolio section we mention Panvel's year-end convention.

In the IP-Global section, we comment about the recent investment on Western Union.

Lastly, we announce the winner of PIPA 2012: Marcius Galan

THIRD QUARTER 2012

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In the IP-Participações VBF Portfolio section, we explain recent changes to the portfolio brought by the good performance of consumer stocks. We also discuss the increasing government interference in Brazilian businesses. In the IP-Global section, we comment the decrease in the portfolio's net exposure, mostly triggered by higher prices.

SECOND QUARTER 2012

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In this Report, in the IP-Participações VBF Portfolio section, we comment on Itaú-Unibanco's attempt to take Redecard private and review the case on Natura in more details. In the IP-Global section, we present a basket of companies that we have known for decades and are going through bad times: Nokia, HP, JC Penney and Deckers. We then discuss our short in Apple, the reduction of a position in gold, and briefly comment on option trades.

FIRST QUARTER 2012

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In this Report we comment on the reduction of VBF Portfolio's exposure, led by the lower availability of reasonably priced assets featuring the qualities we seek. In the Investments section we discuss in detail two companies in the shopping mall industry that have been part of the Portfolio for a few years. In the IP-Global section, we make some considerations on the race between human consumption and productivity, as well as on our focus on productivity-inducing companies.

Reports 2011

FOURTH QUARTER 2011

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In this report, we comment on two companies of the portfolio: Porto Seguro and Saraiva. We also bring information about the shareholders agreement recently signed involving the controlling families of Dimed/Panvel and IP. In the IP-Global section we present some notes on technology companies and a discussion about "the Japanese Analogy".

THIRD QUARTER 2011

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In this report, in the section on IP-Value Brazil and VBF Portfolio, besides the comments on the portfolio we discuss our recent investment in Natura and offer a few comments regarding our position in Itaúsa. In the section celebrating IP-Global's 10th anniversary, we discuss some changes in the portfolio and comment on recent events related to Berkshire Hathaway. Finally, we explain in greater detail the fundamental factors behind our investment in Microsoft.

SECOND QUARTER 2011

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In the course of the quarter we made some important changes in our investments. In the section on IP-Value Brazil and VBF Portfolio, we discuss the increase in our cash position, highlighting again its "offensive" aspect: it acts not only as a cushion in a fall, but potentially as a "cannon" when opportunities appear. In the section on IP-Global, we comment on certain technology companies, and particularly the acquisition of Skype by Microsoft, the Fund's largest position.

FIRST QUARTER 2011

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In the course of the quarter, despite having kept a comfortable cash position in our Brazilian equities portfolios, we had the opportunity to implement some interesting changes in their holdings, changes that we will comment on in this report. In the Investments section, we present an update in our studies of Redecard.

In the IP-Global section, we highlight the Consumer Goods industry. The progress in our studies and the changes in the prices of some of the companies in this sector led to two new holdings with interesting perspectives despite their different histories: Unilever and Reckitt Benckiser.

Reports 2010

FOURTH QUARTER 2010

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


A common theme in our reports: in the course of 2010 we had to either sell or reduce some positions exchanged in part for new holdings or accumulate cash. We argue that cash and margin of safety have a connotation and practical use that are much more "offensive" than it seems. We also present Part 2 of the Sand Castles, Concrete Walls text, in which we discuss &lquot;economic moats&rquot;, the metaphor immortalized by Buffett to designate a &lquot;sustainable competitive advantage&rquot; one of the pillars both for the strategy/competition theories and for classical methods for valuing companies.

THIRD QUARTER 2010

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


In this report, we discuss some of our investments, such as Johnson & Johnson and Microsoft. We also present the 1st part of the text "Sand Castles, Concrete Walls". In it we revisit the idea of an "economic moat", using as a backdrop the Maginot Line, an ingenious fortification system which, bypassed by the German army at the beginning of the Second World War, became a synonym for a "white elephant". More important than reflecting on subjects that interest us as investors is to make use of the Maginot metaphor to rethink the sense of security that guides our actions as shareholders or executives, especially in times of calm.

SECOND QUARTER 2010

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


Although the market consensus has been forecasting a blue sky scenario, since the end of 2009 we have been professing a view of the world less optimistic than the average and we have been maintaining a low exposure level in our portfolios. Partly due to this conservative posture, the performance of the IP-Value Brazil, VBF Class A and VBF Class C funds this year has been positive, despite negative stock indices, and IP-Global has outperformed the S&P 500 in the same period.

We are currently going through a period of much research and reflection, as well as enhancing relationships with companies and market sectors in Brazil and throughout the world, but not necessarily making new investments. In this report we share our view of the world, as well as some reflections on issues relevant to our investment environment.

FIRST QUARTER 2010

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


The last few months were a period of much study and few operations. We have found ourselves in a phase with few new situations in which we could have great convictions. We discuss the cases of Saraiva, Berkshire Hathaway, Lojas Renner and Redecard (the last one a new investment still under construction).
Finally, we announced the "Prêmio Investidor Profissional de Arte PIPA", a pioneering initiative in partnership with MAM-Rio (Modern Art Museum).

Reports 2009

FOURTH QUARTER 2009

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


2009 was very good for the Funds. However, the investment scenario is now more dangerous because, apart from the higher share prices, there's an increasing perception that the low interest rate environment globally will be sustainable for a long time. We liken the current optimism and false sense of security to the sensation some visitors to the Yellowstone National Park feel: they're awed by the place and how beautiful it looks, but forget or don't know that a large area of the park is in the very crater of one of the world's largest super-volcanoes. In line with this view, we closed the year with more cash in our Funds.

THIRD QUARTER 2009

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


We discuss our increasingly reduced exposure: "We are investing in businesses that have global quality at prices that offer comfort. Without enough alternatives, we 'sit' on our cash and keep studying with discipline." "We are holding positions which we would be comfortable with should the stock market close for a few years. As we have seen many times in these 21 years, 'to arrive first, first you need to arrive'."
We discuss IMS Health in detail and other cases briefly to exemplify our reflections.

SECOND QUARTER 2009

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


We remind readers that in our experience our long-term out-performance was built in years of turmoil when we dropped less than the markets and that results in 2009 so far, while a pleasant experience, don't necessarily represent our own expectations, especially given our reduced exposure levels. We briefly discuss cases such as Globex, Lojas Renner, Saraiva, Itaúsa, a group of real-estate companies and Berkshire Hathaway.

FIRST QUARTER 2009

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


Despite the almost universal interest in the unfolding of the crisis and the prospects for recovery, both in Brazil and in the main world economies, we do not fail to give due attention to important debates that have been occurring in our capital markets. In the introduction to this report, we make a short comment on the delicate subject of poison pills, and the possibility of removing the entrenched clauses from companies' by-laws. We also discuss cases such as Lojas Renner, Saraiva, Itausa, the real estate sector and Google.

Reports 2008

FOURTH QUARTER 2008

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


One of our most-commented reports. We look back at a highly unusual year a period of seemingly definitive change that proved, definitely, that some things never change. 2008 tested our mettle and reaffirmed old principles, the most cherished of which is our moral diligence. We introduce and exemplify the theme of the structural fragility of incentive systems in two texts, "Own Goal" and "Dolus Bonus". Then we present the core of our reflection on the subject in order to highlight the importance of raising our moral critical standards. Next, we discuss the funds' performance in 2008 and cases such as AB-Inbev. Finally, we present a brilliant speech by Lojas Renner's CEO José Galló, in which he discusses ethics, principles and values.

THIRD QUARTER 2008

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


We discuss our use of the tried and true "roadmap" that our investment philosophy provides during even such periods of turmoil. In a nutshell, "In extreme situations, it makes all the difference to have very clear principles coupled with a simple, hands-on philosophy executed with discipline." Next, we highlight brazilian corporate governance issues. Finally, we discuss Globex.

SECOND QUARTER 2008

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


We reflect on our "investment analysis" process, the core activity of a company like ours. We reveal as much as we can about the processes that should, over time, generate favorable outcomes for our investment portfolio. We discuss cases in Banco Nossa Caixa and Fosfértil.

FIRST QUARTER 2008

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


We delve into the subject of Risk Management. For IP, the management of risk is strongly intertwined with our daily and absolute commitment with the quality (current and future) of our analysis process and investment decision making. In our experience, there is no algorithm or "triple A rating" that could replace the common sense and discipline in risk management. We believe, as do Keynes and Buffett, that "it is better to be roughly right than precisely wrong". The fact that a significant amount of IP partner's wealth is invested in the funds is also very relevant. In this regard, we fully agree with Bernstein: "Risk is choice, not fate".

Reports 2007

FOURTH QUARTER 2007

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


THIRD QUARTER 2007

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


SECOND QUARTER 2007

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


FIRST QUARTER 2007

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


Reports 2006

FOURTH QUARTER 2006

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


THIRD QUARTER 2006

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


SECOND QUARTER 2006

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


FIRST QUARTER 2006

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VBF / IP-BRAZILIAN EQUITIES / IP-GLOBAL


Reports 2005

FOURTH QUARTER 2005

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IP Equity Hedge Brazil Class


FOURTH QUARTER 2005

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IP Value Brazil Classes


THIRD QUARTER 2005

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IP Value Brazil Classes


THIRD QUARTER 2005

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IP Equity Hedge Brazil Class


SECOND QUARTER 2005

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IP Value Brazil Classes


SECOND QUARTER 2005

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IP Equity Hedge Brazil Class


FIRST QUARTER 2005

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IP Equity Hedge Brazil Class


FIRST QUARTER 2005

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IP Value Brazil Class


FIRST QUARTER 2005

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IP Value Brazil II Class


Reports 2004

FOURTH QUARTER 2004

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IP Value Brazil Class


FOURTH QUARTER 2004

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IP Equity Hedge Brazil Class


THIRD QUARTER 2004

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IP Value Brazil Class


SECOND QUARTER 2004

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IP Value Brazil Class