Bulls of Rio: JPMorgan Brazil fund feeling upbeat

Gávea Investimentos, J.P. Morgan's Rio de Janeiro-based hedge fund unit and one of the largest in Latin America, is bullish on beaten-down Brazilian stocks rebounding in 2014.

"We see potential for a surprise on the upside in earnings in 2014," Thomas Souza, Gávea's equity chief, wrote in a letter to investors obtained by CNBC.com. "We continue to pursue a strategy that invests in stocks which we believe have robust fundamentals and that are resistant to the challenging economic environment."