Brazil is now "so bad it's good," Mike Novogratz, a principal of publicly traded investment firm Fortress Investment Group, said Monday at the Sohn Investment Conference in New York.
Novogratz, a macroeconomic hedge fund manager, said that investor pessimism on Brazil is "at an all-time high" and that "it's been a very difficult place to make money."
But that common view is making assets relatively cheap. According to Novogratz, the country's economy is likely to recover if President Dilma Rousseff loses her re-election bid this year to one of two other more economically conservative candidates.
Read MoreFinding new frontiers in mutual fund investing
"The bet is simple. Between now and the election, the probability of Dilma winning is going to go a lot lower than it is today. I actually think she loses the election," Novogratz said. "You'll see a major rally in Brazilian assets."
He specifically recommended buying local equities, currency and long term bonds.